(Image: Private Media)
(Image: Private Media)

Yesterday's lower-than-expected 6.1% inflation outcome for the year to June contains some important information on inflation causes -- and the stark lack of any way it can be controlled by either monetary or fiscal policy.

The obvious examples are petrol and food. Both are rising not because of high demand from consumers, but because of external factors. "The CPI's automotive fuel series reached a record level for the fourth consecutive quarter," the ABS said yesterday. "Fuel prices rose strongly over May and June, following a fall in April due to the fuel excise cut."

Global energy prices and particularly oil prices are well outside the RBA's control, and that of Treasurer Jim Chalmers.