The Reserve Bank of Australia upgraded its underlying inflation forecast almost all the way through to December 2024 as businesses pass through higher energy prices, and flooding on the east coast of Australia puts upward pressure on grocery prices.
The bank’s preferred underlying measure of inflation – the trimmed mean – is now forecast to peak at 6.5 per cent in December 2022, up from 6 per cent three months ago, before falling to 3.75 per cent in December 2023.
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Emma Rapaport is a co-editor of the Street Talk column. Prior to that, she was a markets reporter at The Australian Financial Review. Connect with Emma on Twitter. Email Emma at emma.rapaport@afr.com
