Reserve Bank governor Michele Bullock has maintained the central bank has a “low tolerance” for price pressures to stay higher for longer.
Hotter-than-expected quarterly inflation data, released on Wednesday by the Australian Bureau of Statistics, showed inflation in September accelerated to 1.2 per cent, up from 0.9 per cent in June.
Speaking at senate estimates on Thursday, Ms Bullock admitted the inflation numbers were a “little higher” than the central bank had been forecasting but was expected given recent economic data. “It was pretty much where we thought it would come out, given the information we’ve come into since then,” she said.
“While goods price inflation is easing quite a lot as supply issues unwind consistently, we‘re seeing that although services inflation is declining, it’s still higher than we’re comfortable with and it’s also reasonably persistent,” she said.
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