Inflation is the sustained increase in the general price level in an economy. Since the mid 1990's the Australian Government has placed high priority on controlling inflation due to the negative impact it can have on our economy. It uses monetary policy, fiscal policy and microeconomic reforms to control inflation and achieve non-inflationary sustainable economic growth and low unemployment. Inflation is a restraint towards economic growth and can instil uncertainty in economic agents' view about …showed first 75 words of 1712 total…

…showed last 75 words of 1712 total…zero in 97-98. The inflation rate has been well within RBA's target range since until 2000 where the GST combined with soaring petrol prices and strong demand due to economic growth impacted. Maintaining low inflation is a major objective in an economy because of the benefits that lower inflation can provide in the long run. Australia's success in sustaining low levels of inflation has seen Australia's economic growth increase and become more solid as an economy.