Inflation is dropping.

 Well the CPI was released yesterday and we found out inflation is stil lfalling however the fall is not fast ( as in other countries.

Here is the Quarterly CPI and Monthly CPI.

John Hawkins has a good article on it.

I do not think there is any reason to further raise interest rates but I tend to think the RBA will raise them another 25 basis points. If for no other reason to ensure the new governor ( governess?) has no reason to raise rates but mainly to ensure inflation does fall back to where the RBA wants it.

Raising rates to combat a supply side shock is a bad way to combat this kind of inflation BUT the RBA has NO other weapon.