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Likely spike in AU CPI seen only temporary
The latest inflation figures are expected to show a massive price jump, but this won't be a concern for the Reserve Bank of Australia, particularly at a time when the economy is hurtling into a new downturn. The consumer price index for the June quarter is released by the Australian Bureau of Statistics on Wednesday and economists are expecting the annual rate to spike beyond the RBA's two to three per cent target band. But RBA governor Philip Lowe has been anticipating such an increase and what he sees as a temporary rise as a result of a reversal of some COVID-19-related price reductions a year ago. It expects it ... (full story)