Australia’s inflation challenge: What’s driving prices and what the RBA does next

#australianeconomy #interestrates #ausbiz #economics #macroeconomics #commbank Inflation has become one of the defining challenges for the Australian economy, but why did it take off and has Australia already hit its economic “speed limit”? Host Mandy Drury speaks with CommBank Head of Australian Economics Belinda Allen about how inflation re-accelerated and why the Reserve Bank of Australia had already begun tightening policy even before the latest escalation in the Middle East. From strong demand across households, government and business to constraints on supply, they explore what is driving inflation and how close Australia is to its limits on growth. Belinda unpacks how different geopolitical scenarios, from a quick de-escalation to a prolonged disruption in energy markets, could shape the outlook for the Australian economy. She also explains the role of fiscal policy, and what it all means for the RBA’s next moves. 0:00 Intro 0:21 Why inflation is back 0:47 What pushed inflation higher again 2:03 Has Australia hit its economic speed limit? 3:34 Fuel prices, supply shocks and business costs 5:46 Why the RBA was already hiking 7:43 Monetary policy vs fiscal policy 9:35 Three Iran scenarios and what they mean 13:25 Could the RBA go harder on rates? 14:31 Why unemployment is still low 17:15 Housing, household wealth and spending 19:29 What another rate hike means for home prices 20:03 Best-case and worst-case outlook for Australia 21:30 Are we near peak uncertainty? 23:14 Markets ahead 23:37 Oil, Iran and the next CPI read More economic news and analysis from Commonwealth Bank: https://www.commbank.com.au/newsroom/...