Australian Households Face $2 Petrol and Possible 4th RBA Hike as Crude Tops $100
Updated
Updated · The Guardian · Jul 24
Australian Households Face $2 Petrol and Possible 4th RBA Hike as Crude Tops $100
3 articles · Updated · The Guardian · Jul 24
Summary
Markets now price an even chance of a fourth RBA cash-rate increase on Aug. 11 as economists warn the oil shock could keep inflation pressure alive.
Brent crude has jumped 37% this month and moved back above $100 a barrel, driven by the escalating US-Iran war, the Houthi Red Sea blockade and attacks on Russian energy infrastructure.
Unleaded has already risen to $1.80 a litre from about $1.50 at the start of July, and Barrenjoey expects it to climb back above $2 after the remaining fuel excise discount ends on Aug. 2.
Diesel is already about $2.20 a litre in major east-coast cities, adding to household strain as borrowing costs stay high and the economy slows.
NAB still expects the RBA to hold, arguing inflation is tracking slightly below forecast and unemployment is a little higher, though it warned another hike plus fuel costs would hit vulnerable households hard.