Summarize this content to 2000 words in 6 paragraphs RBA assistant economic governor Sarah Hunter says the Australian economy is running “a little bit hot” with some parts of the country struggling more than others, and that the bank is keeping a close eye on the US.Appearing before the Senate select committee on cost of living on Wednesday, Hunter said there were discrepancies between the experiences of different people, sectors and regions across the country.RBA assistant economic governor Sarah Hunter at a hearing of the Senate select committee on cost of living.Credit: Peter Rae“There are pockets of strength across the economy, not all sectors are experiencing the same thing,” she said, noting the retail sector was struggling while there was stronger employment growth in sectors such as health and education.“Geographically, Victoria and Tasmania are underperforming, while WA and South Australia look like they’re doing a bit better.”Hunter said headline inflation, which the bank expects to drop throughout the year before increasing sharply next year, took into account the volatility of petrol prices, an increase in tobacco excise, and energy rebates from both state and federal governments.“The return of inflation to target will take a little bit longer than we were previously anticipating,” she said.“But going forward, we think demand and supply will rebalance and get us back to target.”Asked about recent financial market volatility, Hunter said while the RBA was concerned about the US, the market reaction to US data in recent days did not directly influence the RBA’s interest rate decision.“We are monitoring those conditions very closely,” she said.“Our sense and our view at the moment is that we do expect the US economy to slow. We are very mindful that it could be slightly sharp [but ] … generally speaking, it isn’t flashing red for a recession.”
