Australia’s inflation outlook has taken a turn for the worse, according to Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser. Speaking during a fireside chat on Wednesday, Hauser described the inflation forecast as “materially worse” than what the RBA had predicted in August. He cited rising oil and technology prices, along with persistent domestic pressures, as key factors driving this shift.
Hauser specifically highlighted the impact of higher AI and tech prices on the Consumer Price Index (CPI). He also noted a boom in data center construction in Australia, which is contributing to upward pressure on inflation. These developments come ahead of the RBA’s policy meeting in early November, where a rate hike could be on the table.
The deputy governor’s remarks underscore the challenges facing the Australian economy as it grapples with both global and local inflationary forces. The RBA will need to carefully weigh these factors when making its next policy decision.