The graph above charts inflation in Australia from 1961 to 2010. The inflation rate in Australia from June 2001 to June 2002 averaged 2.8 per cent, close to the top of the target rate, prompting concerns about inflationary pressures in the economy. In the face of such concerns the RBA increased interest rates in May and June 2002. Inflation fell as a result and remained at around 3 per cent between 2002 and 2007. In 2007 and 2008 inflation started to rise as the economy was fully employed and economic growth was high. It was believed that Australia was at its production peak and was using all factors of production. Inflation reached 4.4 per cent in December 2008. The weakening world economy and global recession caused inflation to fall in Australia, reaching 1.6 per cent in December 2009, only to rise again as economic recovery got underway: In January 2010, inflation was 2.1 per cent. The Consumer Prices Index for the Australian economy came in at 179.4 for the quarter ending September 2011. The inflation rate year over year was 3.52 per cent.
Source: HSC Online, RateInflation.com