If turbocharged petrol prices are driving up inflation, then why are Australia’s unemployed on the line? | Greg Jericho

AI desk brief

The article argues the RBA is prioritizing inflation over full employment and now faces a higher-for-longer policy backdrop after raising the cash rate to 4.6%. Markets are pricing 4.85% by March next year, while August inflation would have eased without the petrol spike linked to the Iran war, leaving core inflation steady at 3.6%.

It frames the central bank as willing to tolerate weaker growth, with Bullock saying a dramatic slowdown could be needed if inflation expectations drift higher. For metals, the near-term read is mildly supportive only if growth fears cap yields, but the immediate policy signal is still hawkish for real rates.