RBA Warns Rising Tech Prices May Spark Another Interest Rate Hike
The Reserve Bank of Australia (RBA) is concerned about rising inflation pressures due to higher petrol and diesel costs, which are expected to flow through to households and businesses. The central bank's chief economist, Sarah Hunter, said that inflation risks are skewed to the upside.
Hunter pointed out that the scramble for tech components due to the AI boom is causing prices to rise in consumer electronics, including new iPhones. 'Anyone who's bought a new iPhone recently might have noticed that the price went up quite a bit,' Hunter said.
The RBA is also concerned about the broader global environment, which is becoming more inflationary. The escalating conflict in the Middle East has pushed up energy cost pressures in Australia's economy, with oil prices breaking the $US100 a barrel barrier last week.