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The Times

What exactly is inflation, and are interest rates the only option for dealing with it?

  • Written by Luke Hartigan, Senior Lecturer in Economics, University of Sydney
What exactly is inflation, and are interest rates the only option for dealing with it?Alexander Spatari/Getty Images

Just when we thought it was safe to return to the supermarket aisle, it seems inflation has come back to bite us again. Worse, the Reserve Bank of Australia (RBA) predicts it will linger for longer than previously expected, adding to cost-of-living concerns.

So, what is inflation, and what causes it? Do we have to...

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