An inflation-targeting framework being pursued in Australia relies on information on inflation that is already out of date by the time it is used to make crucial decisions, Warwick McKibbin writes.

Australia’s high inflation rate remains a “significant concern” for the RBA Shadow Board at The ANU, which has voted in favour of a second successive rise in interest rates.

As it looks to tackle rising inflation, the Reserve Bank must be wary of raising interest rates too far and too quickly in the precarious global supply environment, Warwick McKibbin writes.