Australia politics live: Chalmers and Gallagher to present final budget outcome; RBA interest rate hike looms

Australia's political landscape is abuzz as the final budget outcome is set to be presented by Chalmers and Gallagher. Simultaneously, the Reserve Bank of Australia (RBA) is anticipated to hike interest rates, marking the fourth increase of the year. In a stark reminder of the impact of fuel prices on the economy, they have surged by more than 10 cents per litre, reaching a national average of 237.5 cents per litre.

Diesel prices have also climbed by more than 13 cents to 286.7 cents per litre, according to the Australian Institute of Petroleum. This surge is attributed to global oil supply disruptions, heightened demand from commercial users, and geopolitical tensions. Economists have drawn connections between these price increases and the ongoing conflict between the US and Israel against Iran, as well as Russia's attacks on Ukrainian refineries.

Elevated fuel prices serve as a significant household expense and inflation trigger, driving up costs across various goods and services. Consequently, central banks worldwide, including the RBA in Australia, are contemplating rate hikes to maintain a lid on inflation.