Skip to main content

Turning point for inflation has been reached

While the exchange rate has only played a minor role in the surge in “core” goods inflation to a record-high, the further depreciation of the Australian dollar over the past month will tilt the balance towards another 50bp rate hike by the RBA next month. However, the September manufacturing PMI suggests that inflation has reached a turning point as supply shortages ease and firms signal smaller increases in output prices. The upshot is that the Bank should be able to slow the pace of tightening from November.

Become a member to read more

This is premium content that requires an active Capital Economics subscription to view.

Already a member?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access