RBA’s Bullock Highlights Difficulties in Cooling Inflation
- Governor points to sticky services prices, tight labor market
- Worries prices too high for too long could unmoor expectations
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Australia’s central bank Governor Michele Bullock pointed to a series of obstacles to bringing inflation back to target that range from sticky services prices to repeated global shocks including the Israel-Hamas war.
“There are a few things that are suggestive that it’s going to be difficult to get inflation down,” the Reserve Bank chief said during a fireside chat in Sydney on Wednesday, pointing to price pressures in everything from takeaway shops to hairdressers, as well as ultra-low unemployment.