A worker is reflected in a wall of the Reserve Bank of Australia (RBA) head office in central Sydney, Australia, March 1, 2016.
Speaking at a UBS conference, Reserve Bank of Australia (RBA) Assistant Governor Marion Kohler said inflation was still expected to decline but not expected to reach the top end of the RBA's 2%-3% target until the end of 2025.
Consumer price inflation ran at 5.4% in the third quarter, down from a peak of 7.8% last year but above RBA expectations.
As a result, the central bank revised up its forecasts for inflation and economic growth in its quarterly statement on policy released last week.
Falling goods prices have led the slowdown in inflation, but domestically generated costs continued to rise, Kohler said.
Persons:
David Gray, Marion Kohler, Kohler, Wayne Cole, Sam Holmes
Organizations:
Reserve Bank of Australia, REUTERS, Rights, UBS, Thomson
Locations:
Sydney, Australia