Domestic data does not support the decision to raise interest rates. Being wrong in the right company (the market and conservative economists) might make for easier dinner parties and congratulatory op-eds in the financial pages, but it does nothing to look after the welfare – economic and otherwise – of the Australian people.
Inflation in August rose from 3.5% to 4.0%, which might make you think the RBA had a point in raising interest rates yesterday. The problem is that all of the increase was due to petrol prices.
The Reserve Bank should use Gross Domestic Regeneration to distinguish imported oil shocks from domestic inflation – and avoid compounding the damage.
There’s a war on Iran choking global oil supplies, an artificial intelligence boom, and a US president torpedoing the global trading system, but inflation simply MUST be normal, according to the RBA.
On this episode of Dollars & Sense, Greg tells Skye that households will struggle “for not much good” because of the Reserve Bank’s latest interest rate hike.
This discussion was recorded on Wednesday 30 September 2026.
Join an outstanding line-up of policymakers, academics and independent experts at the Australia Institute’s Revenue Summit 2026. Tickets are on sale now for the event at Parliament House in Canberra on Wednesday 14 October.
Host: Greg Jericho, Chief Economist, the Australia Institute // @grogsgamut
Host: Skye Predavec, Researcher, the Australia Institute // @skyelark
Quality research, analysis, explainers and factchecks from experts you can trust.
Show notes:
If turbocharged petrol prices are driving up inflation, then why are Australia’s unemployed on the line? by Greg Jericho, Guardian Australia (October 2026)
“No data to support this rate rise” – RBA inflicts more unnecessary pain to fix something it can’t control, the Australia Institute (September 2026)
Australia built an illness system, not a health system, Follow the Money, the Australia Institute (September 2026)
Theme music: Blue Dot Sessions
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