00:00Demand in the Australian economy is still too hot.
00:06Gone!
00:07And it's keeping prices elevated.
00:09I think it's still problematic for Australia that inflation is higher than we'd like it to be.
00:15That's despite the latest figure of 3.4% coming in lower than expected.
00:20Housing was the biggest driver of annual inflation due to a 20% surge in electricity prices
00:27as Queensland state government energy rebates lifted.
00:31Audrey Fan knows all too well the feeling of electricity bill shock.
00:36It was like, are you joking?
00:38I was like, is this for real?
00:41And then of course I had to check the period that it related to and I'm going,
00:46something's not right.
00:47The master made a mistake.
00:49But inflation seems to be cooling with the latest figure of 3.4% for the 12 months to November
00:55down from 3.8%.
00:58Drilling into the figures in more detail, food and drink, restaurants and takeaway prices
01:03as well as petrol all rose between 3 and 4%.
01:07Particularly in relation to things like meat prices.
01:10One of my colleagues said maybe we should just eat more tofu instead
01:13because the meat prices continue to be quite high every month.
01:16Inflation remains above 3%.
01:19Which is a problem because the Reserve Bank ideally wants it right in the middle of the target band
01:24between 2 and 3%.
01:25It means an interest rate hike this year can't be ruled out.
01:29Look, there is some chance the RBA hikes, but I think we really can't know that
01:34until we've seen the next month of labour market data.
01:37All eyes are now on whether the RBA hikes or holds at its meeting early next month.
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