RBA’s Bullock: Good reasons to think we are approaching peak of inflation

Reserve Bank of Australia (RBA) Deputy Governor Michele Bullock said on Wednesday, there are “good reasons to think we are approaching the peak of inflation this cycle.”

Additional comments

Reiterates further increases in interest rates will be required.

Size and timing of rate hikes will depend on the data.

Inflation is too high, increasingly broad based.

But watching inflationary impact of rising electricity prices, rents.

Electricity to add 1 ppt to CPI in year to Q3 2023, 0.5 ppt over 2024.

Rent inflation to rise over coming quarters with vacancies low.

Wages growth is a bit stronger than we had thought three months ago.

Aggregate wages growth moderate so far, consistent with inflation target.

Many uncertainties about the behaviour of households, businesses.

Global economic risks still to downside, particularly for China.