Reserve Bank expected to raise rates after March inflation surge driven by petrol prices
Updated
Updated · The Guardian · Apr 29
Reserve Bank expected to raise rates after March inflation surge driven by petrol prices
10 articles · Updated · The Guardian · Apr 29
Annual inflation jumped to 4.6% in March, with a 1.1% monthly rise, mainly due to a 32% spike in automotive fuel following the Iran conflict.
The surge was triggered by US and Israeli bombing of Iran and the closure of the Strait of Hormuz, causing oil prices to soar about 70%.
Underlying inflation measures remained stable, and domestic price growth slowed, but the Reserve Bank is still likely to raise rates despite most inflation being internationally driven.
Will repeated RBA rate hikes succeed if Australia's inflation is driven mainly by global oil shocks beyond its control?
How long could Australia's inflation remain above target if global energy markets stay volatile?
If real wages are falling and domestic pressures are easing, why did the RBA still choose to raise rates?
How might continued disruption in the Strait of Hormuz reshape Australia's economy and energy security over the next year?
What lessons can Australia draw from other countries' responses to similar imported inflation shocks?
Are there alternative policy tools, beyond interest rates, that could better address externally driven inflation?