The Australian economy is showing a marked rebound from its first recession in decades, but the improvement is unlikely to alter the outlook for interest rates while inflation remains extremely subdued. The latest consumer price index is expected to show benign price pressures overall, with government stimulus measures keeping the lid on some categories. Economists’ forecasts centre on a 0.7 percent quarterly rise in the CPI, which will also keep the annual inflation rate at 0.7 percent, well below the Reserve Bank’s two to three percent target band. Underlying measures of inflation, that are more sensitive for interest rate policy considerations and smooth out wild price swings, are expected to average a subdued 0.4 percent for the quarter and 1.1 percent for the year. The impact of the coronavirus pandemic on prices has resulted in some extreme quarterly movements in the CPI over the past nine months. However, the effects …