RBA Set to Hike Interest Rates Amid Labour's Optimism

Rising inflation and high interest rates are causing trouble for Australian consumers, but Labor is promising better days ahead.

The Reserve Bank of Australia is set to raise the official interest rate to a near-15-year high of 4.6 per cent on Tuesday, which will likely add to households' financial burdens.

Deputy Prime Minister Richard Marles acknowledged that Australians are 'doing it tough', but expressed confidence in the government's ability to manage the economy during this challenging time.

'We're facing an internationally inflationary environment, essentially stemming out of the conflict,' Marles said, referencing the ongoing US-Iran war and its impact on global fuel prices.

The Australian Bureau of Statistics is set to release new inflation figures on Wednesday, which are expected to show a rise from 3.5 per cent to four per cent.