What was the average inflation rate in Australia between 1996 and 2012?

The average inflation rate in Australia between 1996 and 2012 was approximately 2.7%. This figure is derived from a period characterized by stable economic growth and relatively low inflation rates, which were managed by the Reserve Bank of Australia through monetary policy. Over these years, inflation fluctuated but generally remained within a target range that the central bank aimed to maintain to promote sustainable economic conditions.

The choice of 2.7% reflects the average annual increase in the Consumer Price Index (CPI) during that period, capturing the broader trends of prices for household goods and services. Understanding this average is important as it helps in analyzing the effectiveness of monetary policy decisions and their impacts on purchasing power and the overall economy.

Other rates, such as 2.0%, 3.2%, and 3.5%, either do not reflect the sustained economic conditions during the period or exceed the average rates documented in official statistics. Thus, the figure 2.7% is both realistic and aligned with historical economic data.