The high rate of tobacco inflation reflects the introduction of a new indexation regime in December 2013, which was to see the tobacco excise increase by 12.5 per cent per year above average earnings.
This regime, which was originally legislated for four years, was subsequently extended out to 2020.  http://www.rba.gov.au/speeches/2018/sp-dg-2018-08-22.html  21/23  22/08/2018  Low Inflation | Speeches | RBA  Graph 18  Conclusion In conclusion, I have discussed some of the dynamics that have contributed to the lower inflation outcomes in recent years.