EDITORIAL:

Is low inflation the new normal for our economy?

Rising petrol prices and rents grabbed the headlines yesterday as inflation rose to an annual rate of 1.7 per cent for the June quarter.

But it was far from a big spike and while it is inside the Reserve Bank's target band of 1-3 per cent, it remains on the low side.

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Economists expect to see it falling again as the economy slows.

In fact, petrol prices have already started falling again.

More troubling for the Reserve Bank is the expectation that business spending and GDP growth will continue to

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