https://www.rba.gov.au/speeches/2018/sp-ag-2018-12-10.html  9/10  12/10/2018  US Monetary Policy and Australian Financial Conditions | Speeches | RBA  Conclusion Global developments undoubtedly influence Australian financial conditions. In particular, developments abroad can influence the value of the Australian dollar and affect global risk premia.
By contrast, underlying inflation – which relates more to domestic price pressures – continues to remain very subdued and has yet to show clear signs of a more dynamic upward movement. For example, the annual rate of HICP inflation excluding food and energy has mostly remained below 1% since late 2013. So why is underlying inflation still slow to pick up?