the ABS released our monthly inflation rate. There was both good and bad news. The bad news was inflation barely budged at an annual rate. the good news is that for the second month inflation annualised was running within the RBAs target.
The other bad news was Trump's fooly of declaring war on Iran. This has raised the price of petrol. Because it is ubiquitous it is like the GST being being raised. I think we can safely say the next CPI will show inflation above 4% and it rising to above 5% this year.
For history read THIS.
A supply side shock like this will cause a recession and the RBA reaction almost guarantees this. Rates wil almost certainly be raised in May and perhaps again after that.
This year is going to be tough!
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