RBA likely to lift interest rates in face of price rises, as domestic inflation pressures mount

Broad 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.

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