in a sharp increase in prices for many goods. then, as the pandemic ’ s effects on supply chains were starting to ease, russia ’ s invasion of ukraine led to spikes in energy and some food prices. headline inflation around the world is now declining as goods price inflation is continuing to ease and the energy price rises have unwound, and this process has a bit further to run. but many countries are observing that core services inflation is declining much more slowly. a similar trajectory in inflation has been seen in australia, although with a slight delay compared with many of our peer economies. supply chain effects were certainly evident in goods prices and, like overseas, we are observing an easing of these pressures. the energy price impacts didn ’ t hit us at the same time as other countries, but we also saw electricity and fuel prices rise sharply. as these supply - side effects wane, headline inflation will come down and we are already observing this. but in the background, there has been a solid demand - driven component to inflation. this shift from mainly supply - driven to mainly demand - driven inflation has been a part of our inflation outlook for some time. there are three pieces of evidence that collectively paint a picture of a sizeable demand - driven element to inflation. the first signal is that inflation is broadly based. this is evident from trimmed mean inflation, which remains too high and, in the most recent quarter, was stronger than had earlier been expected. and if we look across the cpi basket, around two - thirds of items have inflation running above 3 per cent – indeed, often a long way above that r e s e r v e b a n k o f au s t r a l i a number ( graph 2 ). inflation is lower than average for only a few volatile items – such as fresh food and holiday travel – and for some items for which government subsidies have recently been increased ( graph 3 ). so inflation is much broader than just rising prices for petrol, electricity and rents – prices are rising strongly for the majority of the goods and services we all consume. graph 2 inflation by cpi expenditure class item year - ended, september quarter 2023 % % 3 per cent - 5 - 5 - 10 - 10 - 15 cumulative weight ( % ) - 15 sources : abs ; rba. graph 3 inflation deviation from average * six - month annualised, september quarter 2023 ppt volatile & administered selected goods selected services ppt telecommunications - 10 household services - 10

brad jones : panel participation at the regulators 2024 speech by mr brad jones, assistant governor ( financial system ) of the reserve bank of australia, at the regulators 2024 " navigating trans - tasman financial challenges ", organised by finsia ( financial services institute of australasia ), sydney, 8 november 2024. * * * good afternoon, and thank you to finsia for the opportunity to discuss some of the rba's regulatory and supervisory priorities in our payments policy and financial stability work. australia has a payments system that we can be proud of. by global standards, it is fast, efficient and reliable. at the same time, the australian payments landscape is rapidly evolving, and there is always room for improvement. alongside opportunities for new business models and technologies to emerge, there are also some challenges for the system. regulators are leaning into these challenges and industry will need to as well. the payments system board is focused on fostering competition and innovation in a regulatory environment that promotes the ongoing safety and security of the australian payments system. in overseeing the activities of clearing and settlement facilities with our colleagues at asic, rba staff and the payments system board ( psb ) are equally focused on ensuring that these critical operations are run in a way that supports the stability of the australian financial system. with this in mind, let me share with you the psb's five strategic priorities that were set out in the recently released annual report. 1 priority # 1 : promoting the safety and resilience of payments and market infrastructures australians increasingly depend on the availability of electronic payment systems, and our financial system is reliant on the smooth functioning of market infrastructures. the orderly migration of bulk electronic clearing service ( becs ) payments to more modern payment rails, such as the new payments platform ( npp ), is of critical importance, recognising that becs has been australia's primary system for account - toaccount payments for over 30 years ( facilitating most salary, welfare and pension payments ). the industry target date of 2030 is ambitious and will require a concerted and coordinated effort by industry to meet. this effort must include close engagement with a wide range of stakeholders. in the meantime, the rba is conducting a risk assessment to identify and understand how the transition risks are being managed. beyond becs, and in light of the worsening cyber and geopolitical risk environment, the operational resilience of australia's payment