Articles about Inflation

Economists predict RBA will raise interest rates this week and in May – days before treasurer unveils budgetFollow our Australia news live blog for latest updatesGet our breaking news email, free app or daily news podcastHouseholds can expect significant additional cost-of-living pressures because of the war in the Middle East, with Jim Chalmers confirming that the government expects inflation to rise beyond 4.5% in Australia.But the treasurer said he did not expect the economy to fall into recession because of the war sparked by US and Israeli bombings in Iran. Continue reading...

Crude oil benchmarks hover near $100 per barrel, up 70% since early January, with forecasts of $150 highs if the Strait of Hormuz remains disrupted. U.S. fuel prices have risen nearly 35% from January lows, though domestic supplies prevent shortages. Energy producers like Exxon Mobil and Chevron hit record highs, while the Dow Jones fell 6% in a month amid stagflation concerns. Prolonged conflict could reverse Fed rate cuts and pressure consumer sectors further.

The U.S. PCE inflation index reached 3.1% in February 2026 data released March 13, exceeding forecasts and fueling concerns over persistent price pressures. This reading, alongside Brent oil hitting $100, pushed back expectations for Federal Reserve rate cuts into late 2026. Economists note the figure complicates the Fed's dual mandate amid slowing GDP growth. Markets now price in steady rates through mid-year.

The yield on the 10-year US Treasury note rose to 4.28% from 4.26% late Thursday on March 13, 2026, marking a jump from 3.97% before recent geopolitical tensions. Higher energy prices have fueled inflation fears, prompting investors to adjust Fed rate cut expectations. This bond market shift signals broader concerns over economic stability. Yields may face further upside if oil remains elevated.

US Treasury volatility reached a nine-month high on March 13, 2026, driven by surging oil prices and tariff announcements stoking inflation worries. Bond market turbulence reflects broader economic uncertainty from geopolitical risks with Iran. Traders now price in a full Federal Reserve rate cut this year despite persistent inflation pressures. This spike underscores fragile market sentiment ahead of key economic data releases.