5  Graph 6  New Dwelling Inflation Year-ended %  %  20  20  15  15  10  10  5  5  0  0  -5  2002  2007  2012  2017  -5 2022  Sources: ABS; RBA  The other element in the workhorse models of inflation is inflation expectations.
Inflation expectations have picked up a little, but the measures derived from financial prices suggest there is a high degree of confidence that inflation will return to target (Graph 7). This suggests that a pick-up in inflation expectations is not a primary driver of the sharp rise in inflation.