Australian headline inflation is back above 2 per cent — just.
Price pressures are far from consistent across the Australian economy, however, and without any sign of wages growth businesses are not looking like they are going to get some pricing power back any time soon.
ANZ senior economist Joanne Masters is an expert on the Australian inflation outlook and in this week’s episode of Devils and Details she walks through the most recent data and explains why we are staring at an extended period of low inflation this year and next — and the implications for monetary policy.
We reference this chart on the show, which highlights the drag from tradable inflation on the overall picture.
We also talk about the continuing declines in house prices and the work of the Women in Economics Network — and end up having a spirited discussion about the high costs of childcare in Australia’s major cities and the impact of that on workplaces.
You can find the show on iTunes or by searching “Devils and Details” on your podcasting platform of choice. You can also tune in below. Enjoy!
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