With conditions in the US economy currently ripe for pass-through of higher wage costs to consumers, the upside ahead in wage inflation points to the prospect of higher core CPI inflation.
The rest of the world is paying very high prices for Australia's mineral and energy exports while import prices, excluding oil, have barely risen over the past few years.
Export values for minerals just look too low to us. It may be underestimated or just that the full effect from higher contract prices hasn't fed through yet, though it's been a few months now.