RBA Deputy Warns Years Needed to Tame Inflation Surge

Reserve Bank of Australia deputy governor Andrew Hauser has sounded alarm bells over inflation, warning it will take years to fully get on top of the post-pandemic surge in prices. Australians are 'furious' about rising costs of living, and Dr Hauser acknowledged the weight of higher expenses and interest rates. However, he emphasized that inflation is the nation's biggest problem, despite the economy doing well in other areas.

Dr Hauser attributed the long-term issue to ongoing global factors such as the conflict in the Middle East, the unexpected boom driven by artificial intelligence, and a weak supply potential. He insisted the public has not yet lost confidence in the RBA's ability to reach its inflation target of 2-3% per annum.

The RBA expects to return to this target by the end of next year, but Dr Hauser noted that it will take time to resolve the issue and warned that interest rates may need to be raised further. He emphasized the importance of addressing inflation, stating 'everywhere I go, I hear costs, costs, costs, inflation, inflation, inflation, and that's our responsibility. We have to put that right.'