US consumer price index (CPI) inflation rose 3% in the June year, down from 9.1% a year earlier. "When you've hiked [interest rates] by 400 or 450 basis points, the current inflation rate, yes it's still important, but it's less additive to your information set. "Certainly there are other policy tools available. But in the absence of somebody else stepping up and delivering those other policy tools, it's up to our central banks that have their inflation mandates. Climate challenges, meanwhile, are "a supply side shock which will tend to boost inflation and will tend to worsen incomes.

Source: New Zealand Herald July 15, 2023 16:45 UTC