Headline inflation in 1Q22 rose to 5.1% and this is the highest inflation rate since 2001. Yesterday the RBA surprised many punters by raising the interest rates by 0.25%.
There is now discussion of increases in wages increases between 3 and 4 percent.
At the same time, the central forecast for 2022 is for headline inflation of around 6 per cent and underlying inflation of around 4¾ per cent; by mid 2024, headline and underlying inflation are forecast to have moderated to around 3 per cent. These forecasts are based on an assumption of further increases in interest rates.
The RBA further has mentioned the resilience of the Australian economy is particularly evident in the labour market, with the unemployment rate declining over recent months to 4 per cent and labour force participation increasing to a record high. Both job vacancies and job ads are also at high levels. The central forecast is for the unemployment rate to decline to around 3½ per cent by early 2023 and remain around this level thereafter. This would be the lowest rate of unemployment in almost 50 years. It seems now is an opportune time to consider the opportunity to outsource compliance work offshore. If you’d like to discuss outsourcing to Odyssey then drop us a line.