Reserve Bank governor Philip Lowe has warned that the 2022 Russo-Ukraine conflict might trigger a new wave of inflation, and as a result, interest rates are likely to rise.


This article by Gareth Hutchens, writing for ABC-Australia, makes the following points:
  • The Russo-Ukraine war has sent commodity prices soaring.
  • The war has sent prices soaring for critical commodities, such as crude oil and gas. 
  • Agricultural commodities have also been affected, with the price of wheat in global markets rising by 40% since Feb 2022.
  • Australia could benefit as it is a significant exporter of all types of commodities.
  • A rise in commodity prices means higher profits for Australian resource companies and higher tax revenue for the Government.
  • Australians would, however, suffer from rising petrol and other prices.
  • A rise in commodity prices is likely to be passed onto manufactured goods that Australia imports.


Recent Runway Posts related to this topic:
References from the Web:
Source Information: