The Australian economy is performing well, and a little stronger than earlier expected. GDP growth is running above 3 per cent. The unemployment rate has declined noticeably, reaching 5 per cent in the month of September. As flagged three months ago, inflation declined in the September quarter, largely because childcare prices fell and utilities price inflation moderated. More generally, inflation remains low and stable. Stronger growth and labour market conditions can be expected to generate a gradual lift in wages growth and inflation over time. The Bank’s forecasts for growth and inflation have been upgraded ... (full story)