AM Rate hike forecast as inflation rises
Nov 26, 2025
Alison Horn, the ABC's China correspondent, shares gripping details about the devastating Hong Kong residential fire and ongoing rescue efforts. Shane Oliver, Chief Economist at AMP, sheds light on unexpected inflation spikes and their impact on interest rate forecasts. Shadow Treasurer Ted O'Brien advocates for fiscal reforms to combat inflation and discusses his plans for cost-of-living pressures. Political reporter Laura Lavelle dives into the controversial social media ban for under-16s and its legal challenges, highlighting the current debates surrounding youth safety online.
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Inflation Surprise Raises Rate Risk
- Yesterday's annual inflation reading hit 3.8%, above the Reserve Bank's 2–3% target range.
- Economists say this reduces the chance of rate cuts and raises the possibility of rate hikes next year.
Energy Rebate Rollbacks Drove Inflation
- Electricity price rises were driven by the ending of rebates and subsidies from a year ago.
- Those rebate rollbacks partially explain the jump in headline inflation versus last October.
Mixed Monthly And Annual Inflation Signals
- The Treasurer highlights monthly easing while acknowledging the annual rate remains too high.
- That mixed picture explains why the Reserve Bank cut rates earlier but remains cautious now.