Economic Buzz: Global cost pressures have increased, says RBA Governor

Michele Bullock, Governor of the Reserve Bank of Australia or RBA stated today that global cost pressures have increased ? the Middle East conflict, the AI boom and extreme weather events are contributing to upward pressure on a range of energy, agricultural and technology-related prices. There is little sign of resolution of the Middle East conflict. Oil and related prices have increased sharply again and will add directly to inflation. She also opined that inflation could prove more persistent and require a stronger policy response. RBA is not alone in being concerned about this as central banks in many other advanced economies are responding to this global inflation shock by increasing their policy rates or signalling they will do so if needed.

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