‘Sticky’ inflation is not falling – but it’s not rising, either. Why should that mean another RBA rate hike?

‘Are consumers out there acting in a way that would suggest they are the ones driving up prices through strong spending? Not at all.’ Photograph: Con Chronis/AAP

The latest inflation figures released on Wednesday showed that inflation is “sticky” and is no longer falling at the pace it was earlier this year. But while there will be those arguing this means we need higher interest rates, the latest retail spending figures – also released this week – show that’s the last thing the economy needs.

There is often a curious bit of fudging around how inflation gets talked about. We sometimes hear the RBA and others worry about “accelerating” inflation, that is, when the growth of prices (inflation) is itself speeding up.