However, it has decelerated markedly since and stood at a mere 0.7% annualized. Not much to show for all that stimulus. Australia’s inflation predicament is not as severe, but it’s notable nonetheless. Annualized CPI was last seen rising at 1.9%. That may be only a whisker below the RBA’s 2-3% target band, but inflation has now been below that for most of the last four years. So, we have two central banks who just can’t seem to hit their inflation targets, with price expectations correspondingly low. This month, both have decided that this is not entirely their fault. In the past few weeks we have heard both the RBA and the BOJ plead with employers in their countries to raise wages. Both have said that they would like to see pay rises of 3% or more, to boost spending and perhaps get prices moving that way.