Strap in, Aussies! It looks like we might be heading for another interest rate hike by the Reserve Bank of Australia (RBA), and the culprit could very well be what some are calling “Jimflation.”
Money markets are buzzing, currently pricing in a significant three-in-four chance of a rate increase as early as Tuesday. This comes hot on the heels of the latest data from the Australian Bureau of Statistics, which revealed that core inflation hit 3.4% in 2025.
This figure, often dubbed “Jimflation” in some circles, is the key indicator that economists and the RBA watch closely. When core inflation remains stubbornly high, it signals that the broader economy is still experiencing price pressures beyond volatile items. Such persistent inflation leaves the RBA with little choice but to consider raising interest rates as a tool to cool down the economy and bring inflation back within its target range.
So, what does this mean for you? Another rate hike would likely translate to higher repayments on mortgages and other loans, adding further pressure to household budgets already feeling the squeeze. It’s a delicate balancing act for the RBA, aiming to curb inflation without stifling economic growth entirely.
All eyes will be on the RBA’s next announcement. Will “Jimflation” push them to act? We’ll find out soon enough!
Source: Original Article
