Reserve Bank of Australia Governor Bullock told a parliamentary committee firms are increasingly forming a view that high inflation may not fall back below 3%. She said businesses are asking whether inflation will decline, which is a concern. Bullock reiterated the RBA’s dual mandate of full employment and a 2%-3% inflation target and warned the longer inflation stays above target, the greater the risk that inflation expectations begin to adjust upward. She said inflation risks are tilted to the

Reserve Bank of Australia Governor Bullock told a parliamentary committee firms are increasingly forming a view that high inflation may not fall back below 3%. She said businesses are asking whether inflation will decline, which is a concern. Bullock reiterated the RBA’s dual mandate of full employment and a 2%-3% inflation target and warned the longer inflation stays above target, the greater the risk that inflation expectations begin to adjust upward. She said inflation risks are tilted to the upside, driven partly by concerns over expectations and by incoming supply shocks — including from the Middle East and weather-related events — alongside demand-side pressures.