The latest national accounts, which show the economy grew by just 0.4% and contracted marginally in per capita terms, provided further confirmation of the increasingly significant risk of effective stagflation for the Australian economy.
Meanwhile, despite relatively weak headline growth and per capita stagnation, inflationary pressures were resurgent in the first full monthly CPI release from the ABS.
Although the RBA is still viewing this indicator with caution, the headline result of 3.8% annual inflation and 3.3% for the trimmed mean was very unwelcome.
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