Inflation is proving more stubborn in Australia than elsewhere, making the RBA’s job harder

By Jak Kakhkharov, Senior Lecturer in Finance, Australian Catholic University

For most of 2026, inflation has remained more persistent in Australia than in similar economies, and the Reserve Bank has been hiking interest rates more aggressively than other central banks. Australian households have been feeling the pain.

Official figures measure both the headline rate or consumer price index (CPI), which includes goods and services typically consumed by a household, and underlying inflation. Underlying…

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