The RBA has acknowledged corporate price hikes contribute to Australia's inflation crisis, according to analysts. 

During its latest board meeting, the RBA acknowledged that certain firms were adjusting their prices, either directly or implicitly, in response to past inflation. 

The board emphasised that these actions posed a heightened risk of persistent high inflation, which could impede efforts to stabilise the economy.

Earlier this year, the Australia Institute conducted research revealing that corporate price gouging and the subsequent surge in profits played a more substantial role in driving Australia's inflation crisis than incremental wage increases. 

The institute questioned the RBA's focus on wage growth, which has remained below the inflation rate, while overlooking the substantial price hikes and profits by corporations.

Reacting to the RBA's acknowledgment, Greg Jericho, policy director at the Australia Institute's Centre for Future Work, expressed his satisfaction, stating; “Finally, the Reserve Bank has acknowledged the role of corporate price hikes in inflation”. 

He said the RBA should cease penalising everyday Australians and redirect blame from their modest wage rises.

Jericho highlighted that companies, not workers, determine prices. 

He added that the RBA's recognition of corporations capitalising on the inflation crisis to enhance their profit margins aligned with recent OECD research, which identified profits as a driving force behind inflation in advanced economies, including Australia.

With the RBA now acknowledging the role of companies in sustaining high inflation levels alongside wage growth, Dr. Jericho concluded; “Finally, the Reserve Bank has itself acknowledged the role companies are playing in keeping inflation high even as the Reserve Bank acknowledges wage growth remains ‘consistent with the inflation target’.”