Key facts
- Inflation accelerated to 4.3% in September, driven by a 9.4% rise in fuel costs.
- Petrol and diesel prices are 24% higher than a year ago.
- Nearly a third of voters blame government spending for rising costs.
- The Reserve Bank of Australia is expected to raise interest rates to 4.85% next week.
- 61% of Australians believe the country is on the wrong track.
Australian Treasurer Jim Chalmers is attributing the country's rising inflation to external factors like the Middle East conflict and increased spending on data centers for AI infrastructure. However, public opinion, as reflected in a recent Essential poll, suggests voters are more inclined to blame government spending for the cost of living pressures. The Reserve Bank of Australia (RBA) also acknowledged the complexity of managing inflation due to global developments. With underlying inflation ticking up and officials prioritizing inflation control over unemployment concerns, the RBA is widely expected to implement another interest rate hike, pushing borrowing costs to their highest level since the Global Financial Crisis.