The key points are:
Keeping inflation low and around the 2-3% target is important in terms of maximising living standards in Australia.
We are optimistic that much of the recent rise in inflation will prove temporary.
But some may reflect the economy hitting capacity constraints as a pickup in household and business spending combines with historically high levels of public spending.
The best things governments can do to help lower inflation is reduce the level of spending in the near term and help boost the supply side of the economy in the long term.