The Reserve Bank of Australia said that some of the upward risks faced by inflation are becoming a reality. Labor market conditions have generally eased as expected in recent months, and leading labor market indicators have generally stabilized. Uncertainty about domestic economic activity and inflation prospects remains high. The Middle East conflict remains unresolved, and in some cases, inflation may be higher than predicted and economic activity may be lower than forecast. Aggregate demand growth needs to remain weak. Demand related to artificial intelligence is driving up the price of technology products.

The Reserve Bank of Australia said that some of the upward risks faced by inflation are becoming a reality. Labor market conditions have generally eased as expected in recent months, and leading labor market indicators have generally stabilized. Uncertainty about domestic economic activity and inflation prospects remains high. The Middle East conflict remains unresolved, and in some cases, inflation may be higher than predicted and economic activity may be lower than forecast. Aggregate demand growth needs to remain weak. Demand related to artificial intelligence is driving up the price of technology products.