Australia expects 3% inflation by year end

The Reserve Bank of Australia has revised its inflation forecast to the top of its 2%-3% target range following its latest consumer price index (CPI) figures.

The central bank said Monday that it predicts inflation will reach 3% by the end of the year, and could remain at the top of the target band for some time: "Ongoing pressures are currently forecast to keep both underlying and CPI inflation near the top of the target range during 2008."

Strong growth had led to "higher-than-expected unde