The Reserve Bank of Australia still has more work to do to bring inflation back to target, Deputy Governor Andrew Hauser said in a speech. He described price growth as "too high," but noted that lower global oil prices from a potential easing of tensions between the U.S., Israel, and Iran would be a positive development. Hauser explained that the board began raising interest rates in February after concluding that demand was exceeding the economy's supply capacity by more than expected, fueling inflation. He said operating on the steeper part of the Phillips curve meant timely policy tightening could curb inflation with a relatively smaller impact on unemployment. "Timely policy steps to reduce inflationary pressures, of the kind we have taken, should also have a proportionally smaller unemployment cost," he said. Headline inflation slowed to 4.0% in May while underlying inflation accelerated to 3.6%, remaining above the central bank's 2%–3% target range.