RBA projects relatively modest rise in inflation over coming year

SYDNEY: Australia's central bank believes the underlying inflation in the country is likely to increase gradually over the coming year. 

But in its quarterly statement on monetary policy, the Reserve Bank of Australia (RBA) warned that with headline inflation growth likely to remain close to the 3% annualised rate recorded in the September quarter for some time, policy would need to be responsive to any signs that demand and inflation pressures were stronger than currently expected.