Speakers: Hon Jane Hume, Andrew Hauser, Michele Bullock, Dr Sarah Hunter, Unknown Speaker

Transcript

Hon Jane Hume

Thank you. Thank you, Chair. Uh we're just watching the inflation data come in, and I'm sure you're doing the same at your end, uh, Ms. Bullock. Um, obviously the headline number there is 4.3% up from 4%, and the trimmed mean or the core uh number is 3.6% up from 3.5%. Just last week, the Deputy Governor, who I know is sitting there with you said that the outlook is materially worse, and it's turning into, and I'm quoting uh Mr. Hussey here, a central bank is nightmare. Does today's data affirm that view?

Michele Bullock

Since you said that, Andrew, I'm gonna pass that, Governor.

Andrew Hauser

Um Senator, I I think that the comment about the nightmare was actually specifically related to the potential for longer term inflation expectations to pick up. Uh, and we are watching that issue very closely. We don't think it is necessarily crystallizing yet, but it is a particular risk, and I think that was the comment I made about the nightmare rather than about the uh the data. I mean, to your to your question about the data itself, um these numbers are broadly in line, my take is with the market expectations and candidly where we thought it would be a swell. Uh, but to your point, uh, these are too high. Uh, we have said that repeatedly, uh, and I'm sure that we will say that uh again today.

Hon Jane Hume

On my reckoning, both of these numbers, headline and core, means that it's been 14 months that uh that we have now been above the target band, the RBA's target band. Is that your count as well?

Michele Bullock

Um I couldn't do how many literally months I but it would it sounds it's over a year, um, and uh we were last in the band sort of mid-25, I think.

Dr Sarah Hunter

Um, yes, uh, if I recall the last time headline inflation was uh below 3% was the month of June 2025. So uh I think your count is correct, Senator.