Inflation not embedded. Yet.

Highest inflation rate since 1987 driven by house building costs, rents, food and petrol; No signs yet of prices-to-wages spiral; Jury still out on whether inflation is 'transitional'

TLDR & TLDL: Aotearoa-New Zealand just reported its highest quarterly consumer price inflation rate since the ‘bad old days’ of 1987, which was an era before the creation of the Reserve Bank Act (1989) effectively outlawed these sorts of inflation rates.

So should the Reserve Bank ‘panic’ and fire interest rates much higher and faster than it is already…

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