Michele Bullock, the Reserve Bank Governor, recently highlighted the significant role petrol prices play in shaping the central bank’s inflation forecast. During a media conference, she discussed the Reserve Bank of Australia’s (RBA) decision to maintain the cash rate at 4.35%.
According to Ms Bullock, fluctuations in petrol prices are expected to keep the inflation forecast somewhat elevated in the short term, particularly over the next six months. However, she anticipates that inflation will decrease after that. This commentary underscores the impact of volatile petrol prices on broader economic indicators like inflation.
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