Middle East Conflict Boosts Aussie Inflation Risk

0:00This is Cory, keeping Sydney in the know you're listening to Sydney News today. Treasury officials warned that the Middle East conflict could boost Australian inflation through higher oil prices. In their main scenario, if crude oil averages $100 US dollars a barrel for three months, headline inflation would rise 0.5. Percentage points higher in the June quarter of 2026. That same spike would temporarily tram real GDP by 0.1 percent, assuming prices and why and quickly afterward. In a tougher case, with oil at $120 US dollars a barrel for longer, inflation jumps a full percentage point and GDP falls 0.3 percent. Markets now expect the reserve bank to hike interest rates again when its board meets on Tuesday. The bank's deputy governor recently signaled the need to act decisively, saying it would hurt everyone if they held back. Treasurer Jim Chalmers calls the war's economic fallout substantial yet uncertain, noting it worsens Australia's pre-existing inflation fight. He mentioned private

1:01forecasters already predict extra upward pressure as they update their outlooks. Meanwhile, the International Energy Agency plans to release 400 million barrels from member reserves to steady markets. Australia has not confirmed a contribution but could tab its own stocks for domestic use to ease global demand. This story is made possible by our sponsor, see the episode description. Layback, press play, let the pillow do the rest. Sound meets comfort, S-O-L-I, solely pillow.com.