The Reserve Bank of Australia (RBA), in its latest bulletin, mentioned in detail the inflation target and their expectations for inflation over the short and medium term.
“The Reserve Bank’s liaison program collects information from firms in Australia about current economic conditions and their expectations for future conditions, inclding their own prices. Firms’ observations provide a timely read on inflation.”
“Over the past six months, firms have generally expected their prices growth to continue to moderate, but on average to remain above the Bank’s inflation target range of 2–3%.”
“Firms have reported that large cost increases over recent years are still flowing through to some parts of the supply chain and have indicated that this is the primary driver of their decisions to increase prices at a faster-than-normal rate.”
“Slower growth in demand and increased competition are expected to result in a further slowing in growth of firms’ prices over coming quarters.”
At the time of writing, the AUD/USD pair is trading near 0.6574, holding lower while losing 0.04% on the day.