Article: AUSTRALIAN INFLATION SEEN EXCEEDING RESERVE BANK TARGET.

SYDNEY, July 25 Asia Pulse - Retail price hikes ahead of the GST and the rising cost of petrol were likely to have pushed inflation in the June quarter above the Reserve Bank's target range, economists predicted today.

But the general consensus was that the central bank would not be overly concerned if the consumer price index (CPI) headline rate were to hit the predicted yearly growth of 3.2 per cent.

"The RBA is unlikely to be surprised or concerned by such an outcome, particularly with the cash rate now at 6.0 per cent," said Macquarie Bank senior economist Andrew Hanlan.

He even said "less volatile measures" such as private sector goods and ...

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