The Melbourne Institute's Survey of Consumer Inflationary Expectations showed that Australians expect inflation to hit 5.9% within the next year. Fortunately, as the Institute's Dr Sam Tsiaplias explains to Phil Dobbie, this might be short term pessimism driven by a spike in oil prices. So what is likely to be the real inflation rate by the end of the year? What does this tell us about the Reserve Bank's approach to interest rates?
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