Economic Uncertainty: Australians Brace for Price Hikes

0:00It's March 4th, here's your Sydney news in two minutes. Treasurer Jim Chalmers has warned that Australians could soon see price hikes due to economic uncertainty from the escalating Middle East conflict. He says the global fallout will shape the federal budget this May, with no firm forecasts yet on inflation impacts. Meanwhile, tensions rose after U.S. and Israeli strikes on Iran, prompting missile retaliation and threats to oil supplies. The region, including Saudi Arabia, Iraq and others, produces 27 percent of the world's crude oil, raising fears of disruptions. Reactions from officials highlight the risks. Reserve bank Governor Michelle Bullock hasn't ruled out interest rate hikes this month, noting a supply shot could fuel inflation or slow global. Growth Chalmers stressed the longer the conflict drags the worse the economic hit. Australia's economy offers some bright spots, growing at its fastest pace in three years, with an annual rate of 2.6 percent through. December

1:00Still, inflation was already a headache before the latest strikes. The government is directing the competition watchdog to monitor fuel prices closely and plan spending restraint in the budget. Opposition figures criticize the lack of preparation for such shocks, but Chalmers vows to keep watching developments. This story is made possible by our sponsor, see the episode description. Your pillow, your podcast, your moment, made for listening in bed, S-O-L-L-I. S-O-L-L-Pillow.com. S-O-L-L-Pillow.com.