CPI Picked Up Quicker Than Expected, Further Upside Seen Before Pullback

"Inflation has picked up more quickly than the RBA had expected, but remains lower than in many other countries. The central forecast is for underlying inflation to increase further in coming quarters to around 3¼ per cent, before declining to around 2¾ per cent over 2023 as the supply-side problems are resolved and consumption patterns normalise. The CPI inflation rate will spike higher than this due to the higher petrol prices resulting from global developments. How long it takes to resolve the disruptions to supply chains is an important source of uncertainty regarding the inflation outlook, as are developments in global energy markets."