If so, inflation stays low for longer, although there are other factors that could push inflation higher. This scenario is one in which the Phillips Curve is flatter than it once was. It is one in which inflation is harder to generate.
We can't yet tell though whether the Phillips Curve in Australia has become flatter, given that we have experienced relatively little variation in the unemployment rate over recent times. The combination of a flatter Phillips Curve and inflation below target raises a challenge for central banks: how hard to press to get inflation up?