Inflation is being pushed to multi-decade highs by constrained supply and higher demand, according to new economic analysis, supporting the Reserve Bank’s push to raise interest rates to curb price growth.
The RBA has faced criticism for tightening monetary policy in response to rising inflation, as overseas pressures such as high global oil and food prices are unaffected by domestic monetary policy.
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Ronald Mizen is the Financial Review’s political correspondent, reporting from the press gallery at Parliament House, Canberra. Connect with Ronald on Twitter. Email Ronald at ronald.mizen@afr.com