Economic Buzz: RBA governor bullock turns hawkish as Australian inflation exceeds target

Reserve Bank of Australia Governor Michele Bullock struck a hawkish tone in her address to lawmakers on Wednesday, warning that inflation was likely to remain elevated for longer than projected in August as upside risks to price pressures materialize. The remarks followed data showing annual consumer inflation accelerating to 4.3% in September from 4.0% in August, its highest level since March, with monthly inflation rising 0.8%?the strongest increase in six months. Annual core inflation also edged up to 3.6%, moving further above the RBA?s 2?3% target range. The hotter-than-expected price pressures have strengthened market expectations of an interest rate hike at the central bank?s November 3 meeting.

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