Aug 27, 2026 – 7.03pmBroad domestic economic pressures, including the rising cost of rents and takeaway food, are behind surging prices despite government claims the Iran war is the major driver of inflation as new data shows monthly household spending grew at its highest annual pace in at least three years.A growing chorus of economists, including from three of the four major banks, now expect the Reserve Bank of Australia to increase rates as early as next month. Some are saying two rate rises may be necessary to tame stubborn price growth.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Rising household spending heaps pressure on Labor and RBA
Economists say the breadth and size of price increases – many of which flow from domestic sources – suggest the central bank will have to move on rates hard and fast.
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