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RBA lifts inflation forecast
The Reserve Bank of Australia (RBA) says it expects headline inflation to remain above its target band for the remainder of the year, following price spikes in the wake of Queensland's floods. "Headline inflation is forecast to remain above underlying inflation – and above 3 per cent – for the remainder of 2011, largely due to the increases in fruit and vegetable prices," the RBA said in its quarterly statement on monetary policy. "It is then forecast to be below underlying inflation for much of 2012, as fruit and vegetable prices normalise." The central bank said underlying inflation was expected to be ... (full story)