And in that time the bank's record has been remarkable - inflation has average 2.6 per cent a year, while in the preceding 20 years (1973 to 1993), it averaged 8.8 per cent.
Over the 80 quarters from September 1973 to September 1993, there were only two quarters within that band. Prior to 1992 the last year in which annual inflation did not rise about 3 per cent was 1963.
In nine of the 20 years since the target was introduced, inflation has remained below 3 per cent. In a further seven years, it didn't rise above 4 per cent (something that never happened from 1970 to 1992).
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But while domestic policy is important, it is equally important to acknowledge that we live in a global economy and that international condition will always affect domestic outcomes. As can be seen in the graph to the right, the reality is inflation, in more recent times, has been better managed through most of the advanced economic world. A comparison of inflation rate across Australia, the UK and USA shows a similar trend - a trend that reflects the so-called "Great Moderation" of the past 25 years:
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The graph below tracks well when and why Australians became concerned by fuel prices. The 1973 OPEC crisis saw petrol prices in Australia rise by 20 per cent, and then toward the end of the decade, automotive fuel prices doubled again. This left Australians out of pocket and concerned about fuel prices.
For the next two decades fuel prices largely rose in line with inflation, a time when fuel prices weren't hitting the headlines. And then in the past 10 years they have risen by more than double the amount of average inflation, placing them back on the public's radar
The fact that from 2003 to 2008 automotive fuel prices went up 73 per cent meant that this was an issue at the 2007 election. But given that in the past five years, automotive fuels pries have actually remained flat, it wasn't an issue in this year's poll.
From 2003-08 the price of dairy products as well as other foods like bread and fruit and vegetables grew by significantly more than they have in the past five years. It was these "kitchen table" issues that Kevin Rudd focussed on in 2007 - and why he championed Grocery Watch and Fuel Watch:
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Interestingly despite the zoom in child care costs in the past five years, little political capital was gained on the issue.
Price rises help explain the hot button issues that underpin election campaigns.
But if we look at the other side of the coin... falling prices... this phenomenon goes a long way to explaining why some local industries are struggling.
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Among the items with prices that have fallen the most in the past 20 years are motor cars and household appliances.
It is no coincidence that those two manufacturing industries are seeing job closures at their local factories.
The bottom line is that even when prices fall, somebody pays. In the clothing industry, the massive push to relocate or outsource manufacturing to places like Bangladesh has had tragic consequences in relation to safety and workers rights, highlighted by the recent factory collapse. There was some very encouraging debate around the time of the tragedy and while this has mostly died down, the debate is continuing in places like the Huffington post.
We do need to be mindful of the effect that price rises have on low income earners, but we also need to understand the effect of some of the decisions we make to drive down prices. Rather than being wholly focused on prices alone, it is time to take a more holistic and ask what is a fair price for an item of clothing, for quality food at the farm gate and even for the petrol and the electricity we consume. The answer to those questions have huge implications for our social policy, for putting a price on carbon, and for the way we play politics on this side of the fence.
It's a difficult collection of issues that won't fit neatly into a three word slogan. I think that is something Australians are quickly understanding. It's now time for our so-called government to play catch up.