‘This shift from mainly supply-driven to mainly demand-driven inflation has been a part of our inflation outlook for some time,’ said RBA governor.
Global supply chains and unstable factors in international politics are no longer the main drivers of inflation in Australia, according to the latest insight from the central bank.
Addressing economists at an annual dinner on Nov. 22, Reserve Bank of Australia (RBA) Governor Michele Bullock said inflation was becoming “increasingly homegrown and demand-driven.”
The governor explained that while the effects of global supply chain disruptions and high energy prices caused by the war in Ukraine on price growth had waned, there had been a solid demand-driven component to inflation in the background.
“The energy price impacts didn’t hit us at the same time as other countries, but we also saw electricity and fuel prices rise sharply.
“This shift from mainly supply-driven to mainly demand-driven inflation has been a part of our inflation outlook for some time.”
Three Indicators of the Shift…
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