RBA Governor says domestic factors are ‘also playing a role’ in rising inflation

Reserve Bank Governor Philip Lowe says increasingly, domestic factors are “also playing a role” in Australia’s rising inflation.

“Following the strong recovery and demand from the pandemic, growth in domestic spending is testing the ability of the economy to produce goods and services,” he said during a media conference on Tuesday.

“This is particularly evident in the labour market, with many firms reporting that the availability of labour is a significant constraint on their ability to operate and expand and invest.”Read MoreThe Australian