My 2c so take with a large grain of salt.
It’s a flawed and outdated eco-system, and that article summarises some of the issues quite well.
The only very blunt instrument the Reserve Bank uses is interest rates, but it generally punishes the ones that are not causing the problem.
The way inflation is calculated is flawed when taken into the context of what influence interest rates has on those ‘basket of goods’. Also, this eco-system assumes that demand is always the issue so hiking interest rates will suppress demand, therefore reducing consumption and inflation, but the latest cycle of interest rate hikes have predominantly been driven by a lack of supply (the downstream effect of the Covid years together with the Russian invasion of Ukraine), so a totally inappropriate response.
For example, official interest rates have little to do with the pricing of fossil fuels (world supply and demand, politics, wars, etc do). If consumption decreases because people are struggling to fill the tank, then this will not help reduce the price of fuel, hence have no effect in reducing inflation (as fuel pricing is in the calculation of inflation).
The RBA is locked into a cycle of ‘let’s be seen to be doing something’ so keeps hiking rates, as if it will somehow fix the inflation issue.
It’s a difficult and complex issue, but the very simple and dumb set of tools the RBA uses isn’t the answer, and generally the low and middle class suffer exponentially more for something they didn’t cause or can fix by their consumption habits, whilst large businesses and those that are cashed up with little debt (for example retired baby boomers) keep spending regardless, which increases pressure on inflation.
It will sort itself out eventually, but it could occur without the unnecessary pain created by the RBA.
OK, I’m done.