Original article by Greg Brown, Matthew Cranston
The Australian – Page: 1 & 5 : 4-Mar-26

The Treasury has advised the federal government that the initial rise in oil prices following the airstrikes on Iran could increase Australia’s inflation rate by 0.15 per cent. Treasury also stated that inflation may rise by about 0.26 per cent if the conflict lasts for 18 months, and warned that any damage to gas production infrastructure in Qatar – which accounts for 20 per cent of global supply – would add to domestic inflationary pressures. Meanwhile, Resources Minister Madeleine King says Australia’s gas market is in a better position to absorb the impacts of the war in the Middle East than in 2022, when the invasion of Ukraine caused a surge in gas prices. Meanwhile, Reserve Bank governor Michele Bullock says the war could result in higher interest rates, noting that inflation is already elevated.

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY, SCIENCE AND RESOURCES