Déjà-vu for Australia’s two-speed economy with inflationary pressures simmering

The Reserve Bank of Australia (RBA) has said it is worried about the booming terms of trade and the eventual emergence of capacity constraints fuelling inflation, but that it also expects near-term inflation to remain high.

However, leading industry analyst and economic forecaster, BIS Shrapnel, says wage pressures fuelling inflation are unlikely to be an issue for at least two years. So where is the near-term inflation threat?

Contact: Rachael Logie