"inflationary pressures are everywhere"Not according to some...

"inflationary pressures are everywhere"

Not according to some well respected economists...

JP Morgan’s Tom Kennedy said it had been a disappointing start to the inflation recovery.

“We still expect the annual rate to spike higher in the June quarter on the back of pandemic-related base effects, but the broad weakness in today’s print suggests domestic price pressures are minimal,” Mr Kennedy said.

“However, this strength is likely to prove fleeting, and we expect the annual rate to move sharply lower.”

Prices are rising but wages aren’t.Source:Supplied

BIS Oxford Economics chief economist Sarah Hunter agreed inflation would accelerate sharply in the June quarter – likely above 3 per cent – for reasons including childcare costs, a further rise in average fuel prices, lifts in the cost of some insurance products, and upward pressure on new dwelling costs as a result of commodity and labour shortages in the sector.

“Notwithstanding these one-off factors, core inflation is likely to remain weak for some time,’ Dr Hunter said.

“Wages growth remains subdued, and demand for many services is still recovering to pre-pandemic levels, which will limit any immediate pressures on price.

“We continue to expect inflation to fall back to below 2 per cent after the June quarter blip and remain there until 2023.”