Fuel costs and RBA hikes equal to a 90 basis point rate rise: 'this is brutal'

The petrol price figures from yesterday now show that unleaded prices have risen 31% since the Iran War began – up some 59.5 cent per litre.

Earlier last week, senior research fellow at the Australia Institute, David Richardson calculated the impact of petrol price rises compared to the cost of a 25 basis points interest rate rise. Last Friday we estimated it at roughly the same cost.

Now the increase in petrol prices is costing Australians around $784 million – i.e. that’s how much extra we’re paying for fuel. By comparison the cost of a rate rise is just $495m

So the cost of the petrol price rises so far is equivalent to 1.6 times the rate rise or a 40 basis points rates rise.

Combined with the 50 basis points rise in February and March in less than 2 months households are paying the equivalent of a 90 basis point rise in interest rates.

That. Is. Brutal.