๐ฅ๐ถ๐๐ถ๐ป๐ด ๐ฃ๐ฒ๐๐ฟ๐ผ๐น ๐ฃ๐ฟ๐ถ๐ฐ๐ฒ๐ ๐๐ฒ๐ฎ๐ฑ ๐๐ผ ๐๐ถ๐ด๐ต๐ฒ๐ฟ ๐๐ป๐ณ๐น๐ฎ๐๐ถ๐ผ๐ป
In disappointing news, inflation rose from 4.9% to 5.2% in August, after previously falling for three consecutive months.
At first glance, that seems to make it more likely the Reserve Bank of Australia (RBA) will increase the cash rate at its next monetary policy meeting, on Tuesday, because the reason the RBA has been pushing up interest rates has been to reduce inflation to its target range of 2-3%.
However, economist Stephen Koukoulas said the Reserve Bank wonโt be moved by the rise in inflation, because it was caused by higher petrol prices, which are very volatile.
โAs any sensible person knows, you don't adjust interest rates, you don't look at necessarily the price effects from petrol prices, because just as quickly as they can go up, they can go down,โ he said.
โIt's still very clear that inflation is well under control; it's on track to hit the RBA's target certainly by this time next year, maybe by a bit earlier.โ
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