Reserve Bank Flags Inflation Risks Amid iPhone and Oil Price Surge
The Reserve Bank of Australia is concerned about rising inflation pressures from various sources, including oil and iPhone prices. According to Reserve Bank chief economist Sarah Hunter, inflation risks are skewed to the upside as higher petrol and diesel costs flow through to households and businesses.
Hunter noted that the broader global environment is also more inflationary due to the scramble for tech components caused by the AI boom.
'Anyone who's bought a new iPhone recently might have noticed that the price went up quite a bit,' Dr Hunter said. 'That's actually true for consumer electronics more generally, and that's directly related to the AI boom; those chips that are in all of our electronic products are in high demand right now.'
The escalating conflict in the Middle East is also adding pressure on oil prices.