Imported inflation threat grows as Middle East conflict pressures Australian economy
Economists warn rising global energy and transport costs could push imported inflation deeper into Australia’s economy, increasing pressure on businesses, households and future interest rate decisions.
The Reserve Bank of Australia's recent rate hikes were driven by domestic inflation pressures rather than offshore developments but that could be about to change. (Image source: QQMinh88/Shutterstock.com)
Australia’s inflation fight may be entering a more complicated phase, with economists warning the conflict in the Middle East risks feeding imported cost pressures deeper into the domestic economy.
While the latest inflation figures showed a sharp rise in headline inflation, one leading academic says the bigger issue for households, businesses and the Reserve Bank is whether higher global energy and transport costs begin flowing more broadly thr…
