"After all," they point out, "what household doesn't buy food, drive a car, or have a mortgage?" I'll respond to these criticisms with three related points. First, and most importantly, the Bank's official target of 2 per cent inflation is based on total CPI inflation, not on CPIX.
This would lead to inflows of capital during the investment phase, followed by outflows associated with the servicing of that debt during the production phase. 8  It is worth noting that a decline in the Australian dollar will help to reduce these costs.