We have, in the meantime, pretty significant challenges of our own that we must meet. Even before the price rises for oil and other commodities seen this year, Australia had experienced a significant pick-up in inflation, in the mature phase of a long period of economic expansion.
The rise in inflation in 2007 and into the early part of this year was not confined to food and energy, even though higher energy costs certainly were at work. Nor could it be put down mainly to “imported inflation”. In fact, the evidence is that a wide range of prices picked up speed.