Thu 6 Aug 2026 16.45 AEST
AAP Image/Dan Himbrechts
A new Reserve Bank survey shows most Australians don’t assess the relationship between inflation and interest rates “correctly” – but there’s much more to it.
On this episode of Dollars & Sense, Greg and Elinor go back to the basics of inflation, living costs and interest rates to show that how they interact really isn’t all that basic.
This discussion was recorded on Thursday 6 August 2026.
More Fool Me: How the gas industry tricked Australia by Richard Denniss, the latest Vantage Point essay from Australia Institute Press, is available now. Use the code ‘FOOLME’ on a four-edition Vantage Point subscription to receive a free copy of Richard’s book, Econobabble.
Host: Greg Jericho, Chief Economist, the Australia Institute // @grogsgamut
Host: Elinor Johnston-Leek, Senior Content Producer, the Australia Institute // @elinorjohnstonleek
Show notes:
The RBA says rate rises don’t really increase living costs. But the data is clear – they very much do by Greg Jericho, Guardian Australia (July 2026)
What’s the Point of the Reserve Bank of Australia?, What’s the Point? with Richard Denniss (August 2026)
‘Impoverishing millions’: Richard Denniss says the RBA needs to rethink how it fights inflation by Tegan George, The Point (August 2026)
Listening to Australians: A New RBA Survey of the Community, the Reserve Bank of Australia (July 2026)
Theme music: Blue Dot Sessions
We’d love to hear your feedback on this series, so send in your questions, comments or suggestions for future episodes to podcasts@australiainstitute.org.au. Subscribe to Dollars & Sense on Apple Podcasts, Spotify, Pocket Casts or wherever you get your favourite podcasts.
The Reserve Bank of Australia (RBA) has released results of their survey, finding that most Australians believe higher interest rates increase inflation. This has no doubt, led to some tut-tutting from the boffins at the RBA, as they lamented the state of economic literacy in Australia today.
From today, with the end of the cut in the fuel excise, petrol is back at full price. And over the past month, Australians have experienced economic pain equivalent to around one and a half RBA rate rises.
