If you are feeling the squeeze at the check-out, official data confirms what your receipt likely shows: prices keep rising.
In August, headline inflation jumped to 4 per cent from 3.5 per cent in July, driven by higher housing costs and automotive fuel prices.
At 11:30am AEDT, we will learn the September inflation rate.
RBA officials have pointed to the Middle East war, the AI investment boom and weak productivity as driving the current bout of high inflation.
Today's figures will help the Reserve Bank board, which will meet after the weekend, decide whether to raise interest rates for a fifth time this year.
Markets currently put the chance of a rate hike this coming Tuesday at about 65 per cent.
We asked ABC business reporter Stephanie Chalmers to explain the situation.
What is inflation?
Why is high inflation a big concern?
Why does the Reserve Bank target inflation?
What causes inflation?
How do interest rates affect inflation?
Source: ABC Australia · Stephanie Chalmers, Georgie Hewson
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- 🇦🇺 AU
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