Cheap electricity and strong labour supply have kept Australian inflation lower than in other countries, the governor of the Reserve Bank declared on Tuesday.
Addressing a group of business economists in an online webinar, Philip Lowe said price pressures in Australia were lower than in countries such as the US and the UK, with underlying inflation of 2.1 per cent in the year to the September quarter.
The divergence adds weight to arguments that rapid price increases in some economies were due to supply disruptions from the Covid-19 pandemic, rather than a global shift towards high inflation.
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