Australia Faces Triple Threat as Inflation Bites Hard

Australia is bracing for an interest rate hike to nearly 15-year highs as high fuel prices, driven by conflict in the Middle East, continue to spark inflation.

Deputy Prime Minister Richard Marles said the government knew households were 'doing it tough' and was working to put downward pressure on inflation.

'We just need to keep working at this to see this through and there will be light at the end of the tunnel,' he told News24 on Sunday.

Marles attributed Australia's economic woes to an internationally inflationary environment, stemming from the conflict.

The Reserve Bank of Australia is expected to lift the official interest rate to 4.6 per cent on Tuesday, with some central bankers in the US, Japan, and Europe having already pushed interest rates up due to rising oil and fuel prices.