“Inflation will get worse before it gets better, but it will get better,” he said on Tuesday.
“Strong demand, a tight labour market and capacity constraints in some sectors are contributing to the upward pressure on prices. The floods are also affecting some prices.”
The official cash rate has risen to 1.35 per cent in what is a steady hike driven by global and domestic pressures that has led to high inflation levels. Source: SBS News
He said inflation is expected to peak at the end of this year but is expected to moderate to two to three per cent by 2023.
– With AAP.