In one direction, strong increases in headline inflation or an upward above-target revision in inflation expectations would reinforce upward pressure on underlying inflation; in the other direction, a material decline in headline inflation or an easing in above-target inflation expectations should alleviate upward pressure on underlying inflation. Underlying Inflation: indicators and analytics Inflation increased very quickly since the middle of 2021 (Chart 1).
I would like to thank Tim Atkin and Kevin Lane for assistance in the preparation of this talk. I would like to begin by thanking the Committee for Economic Development of Australia (CEDA) for the invitation to address this lunch. It is a pleasure to be able to speak at another CEDA function, particularly one here in Melbourne.