IMF's inflation call: limits hit after five years' growth
Mon Jan 22 2007
The Australian --- Page: 27-28 : 22 January 2007 Original article by David Uren
ABIX Summary
The International Monetary Fund claims economies hitting the limits of their capacity could pose the greatest threat to inflation. The organisation argues the capacity issues could be more significant factors in terms of inflation than the rising costs of raw materials. The Reserve Bank of Australia claims capacity constraints in the economy are responsible for a rise in core inflation from an average of 2.5 per cent in 2005 to three per cent in 2006. The Australian Bureau of Statistics estimates that during the September 2006 quarter, about 60 per cent of measured goods and services rose at an annual rate above 2.5 per cent.
