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St.George Bank - An Inflation Perspective
St.George Bank - An Inflation Perspective - May 2008 (PDF)
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Inflation has accelerated over the past 12 months, taking the rate well above the RBA’s 3% target ceiling. An examination of the influences which have contributed to the lift in inflation shows that both local items (housing costs and pharmaceuticals) and tradable goods (fuel and other energy) are amongst the key factors driving prices. While higher international commodity prices are clearly contributing to the rise in inflation, there has been little discussion of the role the strong Australian Dollar has played in preventing even higher inflation. Below, we discuss the impact of the currency on inflation and draw some conclusions regarding the outlook for the CPI and for interest rates.
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Sim'
This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
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