Nevertheless, barring further sizable increases in the prices of oil and natural gas, both core and headline inflation rates should moderate later this year. Buttressing this view, long-run inflation expectations have been, on balance, fairly stable in the face of these price gyrations.
Looked at from China’s perspective, Australia accounts for an even smaller share of its total offshore investment – less than one quarter of one per cent. Furthermore, this share has not changed much in recent years suggesting that China’s investment in Australia has grown in line with its accumulation of foreign assets globally.