Australia: Global price warming

The Reserve Bank of Australia increased the overnight interest rate to 6,5% on Wednesday. After the ninth quarter-point increase since May 2002, rates are at their highest level since 1996. Yet this increase is unlikely to be the last. The world should take note. Like central banks almost everywhere, the Australian monetary authority is trying to get ahead of inflation. The most recent data suggest that the Reserve Bank is instead falling behind. Prices roses 1,2% in a quarter – an annual rate ...