While the impact of the Middle East conflict on inflation has so far been less than expected, headline inflation is still too high. “Momentum in the housing market has shifted, with housing prices falling in some capital cities and new housing loans declining noticeably”. AdvertisementLooking ahead, the RBA expects inflation to remain elevated as fuel prices rise. The statement reaffirmed that bringing inflation down remains the RBA’s number one priority:Advertisement“The Board remains focused on ensuring that high inflation does not become embedded. To achieve this, growth in aggregate demand needs to remain subdued to reduce capacity pressures and bring inflation back to target”.