RBA Blames War for Inflation, Critics Say it's Just a Smokescreen

RBA governor Michele Bullock has blamed the conflict in the Middle East for Australia's ballooning inflation, but critics say this is just a smokescreen for the government's own spending habits.

The Reserve Bank has already raised interest rates three times this year, and Westpac now predicts another hike on September 29, with some analysts estimating that would take the cash rate to a 15-year high of 4.6%.

This would add $120 to monthly repayments on an average new mortgage of $731,000, according to the futures market.

Jim Chalmers has been accused of being 'disingenuous' for talking about cost-of-living pressures while contributing to them through government spending.