When the previous Committee met in February, underlying inflation in Australia had just reached the midpoint of the 2 to 3 per cent target range for the first time in many years. Seven months on, we are in a very different position. Inflation has very quickly gone from being too low, to being too high.
Over the year to June, the headline inflation rate was 6.1 per cent. It is expected to increase further over  1  the months ahead to peak at around 7¾ per cent later this year. Inflation is then expected to start declining, to be back around 3 per cent late in 2024. Global factors explain much of this increase in inflation.