Headline inflation turned up. Why is that? You don’t think if headline turns up then underlying will also turn up, just a bit later. It’s like when we say night follows day. Maybe you need some meds.
The recent dip in the AUD USD exchange rate will add to inflation and is more influential than most people think. With unemployment at 3.9% there is little chance that wage cost increase pressures will abate, another reason why inflation is not under control.
