Inflation jumps to 4.6% in Australia as Iran war fuel shock begins to bite
Inflation in Australia rose to 4.6% in the year to March, up from 3.7% in December, driven largely by a surge in fuel prices linked to geopolitical tensions involving Iran and the closure of the Strait of Hormuz. The jump has increased expectations that the Reserve Bank will raise interest rates for a third consecutive meeting. While underlying inflation remained steady at 3.3%, economists warn that higher fuel costs will push overall prices higher in the coming months. The data intensifies pressure on the government to balance cost-of-living relief with inflation control ahead of the upcoming budget.
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Latest figures from the Australian Bureau of Statistics showed annual inflation climbed to 4.6%, from 3.7% in December, prompting predictions RBA will raise interest rates next week. Photograph: George Chan/EPAView image in fullscreenLatest figures from the Australian Bureau of Statistics showed annual inflation climbed to 4.6%, from 3.7% in December, prompting predictions RBA will raise interest rates next week. Photograph: George Chan/EPAAustralian economyInflation jumps to 4.6% in Australia as Iran war fuel shock begins to bite Financial markets are betting the Reserve Bank will hike interest rates for a third straight meeting next Tuesday Get our breaking news email, free app or daily news podcastPatrick Commins Economics editor Tue 28 Apr 2026 21.32 EDTLast modified on Tue 28 Apr…
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