Mounting inflationary pressures and global uncertainties are setting the stage for further interest rate hikes by the Reserve Bank of Australia (RBA). Core inflation in Australia was already above the RBA’s target before the recent global price shocks, exacerbated by rising energy costs and potential wage-price spirals. Treasurer Jim Chalmers’ call for minimum wage increases exceeding CPI adds to these concerns, given Australia’s weak labour productivity and the RBA’s struggle to meet its inflation target since 2021. [...]