The markets today appear optimistic that rates won't go higher...

The markets today appear optimistic that rates won't go higher again for a while. IMO, the cash rate will have to rise higher than the rate of inflation to bring inflation down to the target range within a reasonable time. So, although the RBA with its track record of low interest rates may use the latest inflation figures as an excuse to pause their interest rate rises, I think that rates must rise further.

Possibly the RBA will not pause just yet, because:-
1. Inflation is still double the upper boundary of the RBA's inflation target of 3%.
2. Inflation is triple the lower boundary of the target. Maybe the RBA will get there in ten years.
3. After removing the "volatile items", inflation has only fallen by 0.1%. Not much progress. "Volatile" effectively means big swings. For example, if the oil price moves skywards again in the next few weeks, then the next monthly inflation figure will probably be higher than the figure published today, while it might be much the same after removing the volatile items.


What I would like to know is how much all the money that is paid by the govt to fund the RBA and other economic advisors is contributing to inflation.