The Reserve Bank of Australia has pushed back the timeline for getting inflation sustainably back into its 2 to 3 per cent target band, due to a splurge in state and federal government spending.
Conceding the “pace of disinflation has slowed”, the RBA said in its latest Statement on Monetary Policy on Tuesday it now expected underlying inflation would not get back to the middle of its 2 to 3 per cent target band until December 2026, six months later than forecast in May.
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Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS. Connect with Michael on Twitter. Email Michael at michael.read@afr.com
