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Speaker 1: Afternoon. Inflation has come in today at three percent, which

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Speaker 1: puts inflation at the very top of the Reserve Bank's

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Speaker 1: target range. It was driven by council rates up nearly

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Speaker 1: nine percent and power prices up more than eleven percent.

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Speaker 1: Jared Kerr is kew we Bank's chief economist, and with

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Speaker 1: us Hi, Jared Hi, are you worried about this or

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Speaker 1: jerik in inflation falls away from here?

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Speaker 2: No, we think this is the peak. It's a pretty

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Speaker 2: tough quarter the third quarter, but things tend to ease

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Speaker 2: off in the fourth quarter. So we had a bit

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Speaker 2: of a spike and in food, electricity, council rates, you

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Speaker 2: know that sort of unwines from here and scratching beneath

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Speaker 2: the surface. We're quite satisfied that domestic prices are heading

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Speaker 2: in the right direction. Not much we can do with

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Speaker 2: the international prices.

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Speaker 1: Where do you see it going? I mean I read

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Speaker 1: somewhere that it might even vote fall below two percent

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Speaker 1: next year. Do you think that?

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Speaker 2: Yeah, that's our forecast. We think inflation this time next

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Speaker 2: year we'll be running at about one point seven to

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Speaker 2: one point eight. So job done for the Reserve Bank.

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Speaker 2: The Reserve Bank really has employed a scorched earth policy

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Speaker 2: here with domestic prices coming off quite quickly and likely

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Speaker 2: to fall over next year, So what are.

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Speaker 1: You going for another cut in November twenty five?

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Speaker 2: Faces points Yeah, I think that's done and dust it.

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Speaker 2: I think we can almost talk about that in the

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Speaker 2: past tense. It's what they do from there. If the

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Speaker 2: economy does not show signs of recovering over summer, then

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Speaker 2: I think the new Arbenz governor will be more than

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Speaker 2: willing to drop it to two percent. But we're getting

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Speaker 2: close to that bottom, which is the key message for

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Speaker 2: business owners, and we are looking to next year with

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Speaker 2: some optimism.

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Speaker 1: Jared, it's good to talk to you. Thank you mate.

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Speaker 1: It's Jared Kirky, we Banks, chief Economist. For more from

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Speaker 1: Heather Duplessy Alan Drive, Listen live to news Talks. It'd

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Speaker 1: be from four pm weekdays, or follow the podcast on iHeartRadio.