RBA Assistant Governor Phillip Lowe noted that global inflation is likely to be elevated for an extended period of time as commodity production remains constrained. In a speech in Sydney Mr. Lowe noted that, “What does seem clear is that the world economy is going through a change in relative prices, and that this change is likely to be quite persistent. At least for the time being, it would appear that the ability of the world to produce commodities is becoming a key constraint on non- inflationary growth for the global economy.”
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