The RBA says there is ‘excess demand’ in the economy. Households doing it tough might disagree | Greg Jericho

The problem with inflation driven by factors such as wars and supply side shocks is that interest rate rises don’t do much Get our daily political email, free app or daily news podcast On Tuesday this week came the biggest news regarding inflation. No, not the Reserve Bank’s decision to raise interest rates; that will do barely anything (although it will most certainly raise unemployment). No, the most important news for inflation was that the US had launched limited strikes on ​Iran’s Qeshm Island. This announcement came after word from the Iranian government that talks were under way to…