Prices for insurance, eggs, gas and postage have surged more than 40 per cent since the end of the pandemic, adding fuel to the political fight over whether government spending is feeding persistent inflation, just ahead of a key test for the Reserve Bank of Australia.
Economists say Wednesday’s September quarter inflation figures will be pivotal in determining whether the RBA board is forced to raise the cash rate to an 18-year high of 4.85 per cent next week – a move that would strike another blow to household budgets and the Labor government’s political standing.
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