Inflation, interest rate rises can’t be fully blamed on Trump, Iran

For all the fuss and debate around the role that Labor’s big spending has played in the resurgence of inflation, the current story of the Australian economy is little different to the simple story told in the media.

Federal Labor may be desperate to pin the blame on Donald Trump for a third straight rate hike, and the fiasco in Iran has likely tipped the scales for the Reserve Bank to hike rates this week. But as the RBA expression From this week’s decision, it becomes very clear that “inflation will recover significantly in the second half of 2025.”