Stevens raises inflation spectre

Inflation is more likely to rise during 2008 than to recede, according to Glenn Stevens, the Governor of the Reserve Bank of Australia.

Despite the warning, Stevens said during a speech on economic conditions and prospects in Brisbane that recent data for inflation showed a more welcome trend.

He added that the supply side of the labour market has recently been more "elastic" and that globalization was forcing prices down. "But," he said, "it would be a mistake to rely too heavily on these inf

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