Inflation in Australia has passed its peak but is still too high and is proving more persistent than expected a few months ago. CPI inflation remains above 5 per cent in year-ended terms – well above the Bank’s inflation target of 2–3 per cent. Underlying inflation is higher than was expected at the time of the August Statement on Monetary Policy. While goods price inflation has continued to moderate largely as expected, the prices of many services are rising briskly. Services price inflation reflects primarily domestically sourced costs for labour and nonlabour inputs and demand pressures; services price inflation ... (full story)