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LATEST AUSTRALIAN RESEARCH BRIEFINGS
Inflation to be subdued following recent volatility - February 2021

Consumer price inflation was remarkably volatile over much of 2020. Government policies aimed at abating cost-of-living pressures in response to the COVID-19 shock led to deflation in Q2. And the subsequent unwinding of these policies boosted headline inflation in Q3 and Q4. The suspension of out of pocket costs for childcare and before- and afterschool care had the largest impacts, but the suspension of health care premium increases and utilities rebates have also contributed.

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