Reserve Bank predicts inflation to peak at 8% – the highest rate since 1990

Interest rates will likely continue to rise to subdue inflation, bank’s quarterly statement says

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The Reserve Bank expects inflation to peak at 8% in the December quarter, propelled by rising energy costs, while wage increases are only forecast to reach a top rate of 4% by June 2024.

In its latest quarterly statement on monetary policy, released on Tuesday, the central bank confirmed the annual consumer price index would accelerate from the 7.3% recorded for the September quarter. If achieved, 8% would be the highest since the first three months of 1990 when it was 8.7%.

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