In addition, inflation pressures should be restrained by the cumulative effects of monetary policy actions and other factors restraining the growth of aggregate demand. Perhaps most important for the inflation outlook, inflation expectations appear to remain contained.
According to the latest national account, GDP increased by 3.3 per cent over the year to June. This was a better outcome than was widely expected a year ago. It is also a little above most estimates of trend growth in our economy. Partly reflecting this above-trend growth, the unemployment rate has declined by around ½ percentage point over the past year.