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RBA Interest Rate Hike Looms as Fuel Prices Continue to Soar

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High fuel prices driven by conflict in the Middle East are contributing to rising living costs for Australians, but Deputy Prime Minister Richard Marles says better days are on the horizon.

The Reserve Bank of Australia is expected to lift the official interest rate to a near-15-year high of 4.6 per cent on Tuesday, following consecutive hikes and the May budget's removal of tax concessions for property investors.

Mortgage holders will feel the pinch as inflation is forecasted to rise from 3.5 to four percent when the Australian Bureau of Statistics publishes its latest figures on Wednesday.

Marles pointed to Australia's internationally inflationary environment, citing overseas circumstances as the driver of economic woes, and said the government was working to put downward pressure on inflation.

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