Questions about the end game for inflation over the next few years
Questions about the end game for inflation over the next few years
20 May 2022
The Reserve Bank's target is to maintain inflation between 1 and 3 percent.
Economist Cameron Bagrie says Treasury's forecasting inflation to average 4.1 percent over a five year period --- and we've been used to it averaging 2 percent for the past 30-odd years.
He says maybe the economic cost of getting inflation back down towards two percent...is too hard.
Bagrie says maybe two percent inflation is a little pie in the sky and as the economic costs become too hard to bear, we shift the inflation goalposts.
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