What is inflationary psychology and how is it impacting our rising cost of living?

What is inflationary psychology and how is it impacting our rising cost of living?

In early September, Reserve Bank governor Philip Lowe began his annual address to the Anika Foundation discussing the country's inflation and its future outlook. It was two days after the RBA governor had confirmed the fifth consecutive hike to the country's cash rate. "After a number of years in which inflation was below target, it is now considerably above target and is expected to go higher still in the short term," Mr Lowe said. "The extent of this turnaround in …