Reserve Bank of Australia governor Michele Bullock was asked by Liberal senator Jane Hume at Senate estimates last week if she accepted that Australia’s inflation rate, 3.7 per cent in underlying terms for the September quarter, was above that of most other advanced economies.
“You’ve got to be careful here because our inflation target is higher than other countries. Other countries’ inflation target is 2 per cent, mostly. Ours is 2.5 per cent, and if you look at how far above target we are relative to ours and other countries, we’re not much different,” Bullock responded.
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