Rent inflation has also been lower in Australia than elsewhere. Looking ahead, we expect a further lift in underlying inflation. There is also likely to be a shift in the drivers of inflation. Our central forecast is that underlying inflation will increase to 3¼ per cent in the coming quarters, before easing to around 2¾ per cent.
Today, in terms of the potential benefits of globalisation, India is in a very different position than would have been the case 50 or even 20 years ago. This is because the sources of what economists call “comparative advantage” have changed dramatically in India’s favour in the 1990s because of the technological revolution.