Next Wednesday’s CPI report is likely to show inflationary pressures in the Australian economy have stabilised, ANZ says. And that means the bank is sticking to its view that the RBA is on track to raise rates in May this year. The bank is forecasting a slight pickup in the quarterly rate of growth for headline inflation, while it expects core inflation will remain steady: The headline increase is likely to be driven by higher prices for petrol, domestic travel and tobacco. And while the bank’s forecast for a 1.8% rise in core inflation remains below the RBA’s target range of 2-3%, ANZ senior economist Jo Masters ... (full story)