{"id":554483,"date":"2026-04-28T04:52:12","date_gmt":"2026-04-28T04:52:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/554483\/"},"modified":"2026-04-28T04:52:12","modified_gmt":"2026-04-28T04:52:12","slug":"learn-why-tomorrows-inflation-data-could-be-important-for-you-in-just-three-minutes","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/554483\/","title":{"rendered":"Learn why tomorrow’s inflation data could be important for you in just three minutes"},"content":{"rendered":"

Hi, I’m Emily Stewart<\/a> and I’m here to help you over the next couple of weeks as we navigate some of the important moments in economic news that could affect you. \ud83e\udef6<\/p>\n

The war in Iran has caused so much uncertainty globally and I know it can be an anxious time as we hear about how the oil crisis has affected us here in Australia. \ud83d\ude1f<\/p>\n

Some of those effects are immediately obvious, like the higher price of petrol. But some things take time to become clear \u2014 like the impact on inflation figures, interest rates and the federal budget. \ud83d\udcb0<\/p>\n

I’m here to help you understand what’s happening. If you have a question for me, please reach out<\/a>. I’d love to answer your questions. \ud83e\udd14<\/p>\n

What is the key moment I should look out for on inflation?What: The Australian Bureau of Statistics will release the latest Consumer Price Index (CPI) dataWhen: Tomorrow (April 29)Why is this important? The CPI tracks how much we pay for a hypothetical “basket” of goods and services we have to buy regularly. \ud83e\uddfa It matters because it’s what the Reserve Bank looks at when it’s deciding whether to increase or decrease interest rates.\"GRAPHICWhat is the Consumer Price Index?What is it? The CPI is the official measure of household inflation and tracks changes in the cost of living for consumers. \ud83d\udcb5 It looks at a broad range of products and services, including housing, food and education. The Australian Bureau of Statistics collects the data monthly using supermarket scanning data, web scraping and even phone collection from retailers. As of October last year, it publishes the data monthly, to give everyone a “quicker read” on inflation. However, monthly data is more volatile than quarterly figures (so take it with a grain of salt\ud83e\uddc2).Why does it matter? It not only confirms our fears about how much products and services have increased in price, but it can also ultimately have a big impact on how much we end up paying in interest on our mortgage \ud83c\udfe0 (or how much interest we earn on savings).How could it affect me? If prices climb faster than your income, you can’t afford to buy as much. This isn’t good news for business either. So, the Reserve Bank tries to keep inflation in the 2-3 per cent range. If it starts getting too high, the bank might decide to increase interest rates to try and encourage Australians to spend less.Should I be worried?\u00a0<\/p>\n

Economists (and financial markets) will be taking particular interest in tomorrow’s CPI data because it’s the first set of data that will capture the impact of the oil price spike caused by the war in Iran.\u26fd\u00a0<\/p>\n

The CPI rose 3.7 per cent in February (down slightly from 3.8 per cent in January). Underlying inflation, (RBA’s preferred measure because it strips out large price movements) was steady at 3.3 per cent. However, that is already higher than the Reserve Bank’s target range (see the graph above). Now, the increased fuel prices are likely to push March inflation higher again. (We’ve actually just seen this happen in the UK\ud83d\udc82).<\/p>\n

So, most economists reckon the Reserve Bank is likely to raise interest rates again in May, in order to get inflation back down. However, don’t forget inflation is only one key set of data. The RBA will also be looking at unemployment figures and economic growth to decide on the official cash rate.\ud83d\udcb8<\/p>\n

Some economists are already warning that we could be starting to see something called “stagflation<\/a>” (a stagnant economy with high inflation). However, others believe the oil price spike might only cause a short-lived inflation peak.\ud83d\udcc8\u00a0<\/p>\n

So, I think at this stage, be alert, but not alarmed. If inflation increases, interest rates are likely to as well. Try and adjust your budget and shop around for the best deal.\ud83d\uded2<\/p>\n

How a global energy crisis can lead to stagflation<\/a><\/p>\n

As the Iran war dries up oil and gas supplies, should we prepare for stagflation?<\/p>\n

What is the next key moment to watch for?What: The Reserve Bank will meet next week and announce whether or not interest rates will rise.When: Tuesday May 5 at 2.30pm AESTWhy is it important? The official cash rate decision flows through to how much your bank charges you in interest on your mortgage, or pays you in interest on your savings.<\/p>\n

I’ll be back soon to help you understand the CPI announcement. Until then, you can follow me for more<\/a> personal finance news.<\/p>\n

Disclaimer: This information is just general in nature. If you need personalised financial advice, please see a professional.<\/p>\n

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