Inflation will reappear in Australia – but that shouldn’t mean the end of stimulus | Greg Jericho

Inflation will reappear in Australia – but that shouldn’t mean the end of stimulus | Greg Jericho

The Guardian

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Last year prices actually fell, so by comparison anything is going to look like a surge

Over the next few months we will see some pretty extraordinary inflation , which the Reserve Bank and the government should ignore as a false sign of a strong economy. They should remain clear that more stimulus is needed.

If there is one guarantee in economic debate, it is that as soon as any sign of economic strength occurs, conservative commentators and politicians will start worrying about inflation.

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