The RBA should consider starting a raising cycle soon, especially given high headline inflation and expansive fiscal policy. But it makes sense for the RBA to stick to its plan of waiting to see more of an effect on wage growth before commencing raising rates to justify doing so even if future headline inflation falls back into the target range when one-off price shocks stop or reverse. Raising rates with higher inflation is ultimately about higher inflation expectations and stronger wage growth will be an important indicator of higher inflation expectations being entrenched within the target range.