Australian growth forecasts slashed as global economy faces inflation spike
Quick Insights
The Bottom Line
Australia downgrades growth forecasts as fuel prices spike due to US-Israel-Iran conflict, threatening inflation.
How This Affects You
Rising energy costs from Middle East tensions could increase U.S. inflation and force the Federal Reserve to maintain higher interest rates longer.
AI Summary
Australian economists are downgrading growth forecasts for this year and next as higher interest rates and global inflation pressures weigh on the economy. The OECD has warned that soaring fuel prices stemming from the US-Israel conflict with Iran threaten to spark a major inflationary spike across European and Asian nations. Rising energy costs are expected to constrain consumer spending and business investment in Australia, making it harder for the central bank to manage inflation without further rate increases. The outlook reflects broader global economic headwinds that are forcing policymakers across developed economies to reassess their growth assumptions amid persistent price pressures.
Source Coverage Map
13 of 43 tracked sources covered this story
Following this story?
Get notified when new coverage appears
Other Sources Covering This Story
5 sourcesMultiple outlets have reported on this story. Compare perspectives from different sources.
This article is part of a story we're tracking:
Should this be getting more attention?
You Might Have Missed
Related stories from different sources and perspectives
FinanceIran war starts to hit global economy, business surveys show - Reuters
<a href="https://news.google.com/rss/articles/CBMisAFBVV95cUxNTjhPUlBHc0VJZkVoRlg2Q0lyTmpSUHB1azRGaGpPdUZSX29YYTN3MXJsN0lKSmNIV3ZzUXgxSENaQ3U5V2tnd0wwLW1Qd1lMU2dqR0NYZTdlOFBmNVBMbEJfTTJCaU84dklSWkFNZnoxdUNXZjRPOVBOdE94RldfcFBDUm05WHQ4WFI1T1NlR0tfMW1MbDJtNlIwZVNwLW16MzRxNWtSUW9pcXpTS25jQg?oc=5" target="_blank">Iran war starts to hit global economy, business surveys show</a> <font color="#6f6f6f">Reuters</font>
Global‘Makes Covid look like a tea party’: Australian food prices could rise for the next year, farmers warn
<p>Iran conflict could see shortages not just in fuel, but fertiliser and fossil fuel resins – used to make milk bottles</p><ul><li><p>Get our <a href="https://www.theguardian.com/email-newsletters?CMP=cvau_sfl">breaking news email</a>, <a href="https://app.adjust.com/w4u7jx3">free app</a> or <a href="https://www.theguardian.com/australia-news/series/full-story?CMP=cvau_sfl">daily news podcast</a></p></li></ul><p>Farmers say Australian consumers could pay more for everyday staples for the next year at least as a result of the US-Israel war on Iran.</p><p>But the CEO of dairy farmer cooperative Norco, Michael Hampson, says a six to 12 month disruption to food supply is likely a best-case scenario, depending on the <a href="https://www.theguardian.com/world/2026/mar/24/middle-east-violence-trump-claims-very-good-talks-iran">strait of Hormuz reopening</a> soon and global petrochemical supply chains beginning to stabilise.</p> <a href="https://www.theguardian.com/australia-news/2026/mar...
FinanceUS fourth-quarter productivity growth revised down, but trend remains solid - Reuters
<a href="https://news.google.com/rss/articles/CBMipwFBVV95cUxQcmhyNGZkSWprOU1sU3V4aXJWemtob1VybWY1SEtUTTJKSWNiS2tpRnc3T0l6U2xURk12NlpwOXA4MDBTcjlja1p0TXVpRmJwT2g3WU82U2hTYmk2eGR6Z2c5MnE5dHF1MjBlejJTT0NhVmNVcTVTRmtvY1ZGaEJFSm1BZVlNUkRNRTBORlhlRDdyWjdBNDBKTE82ZzB5ZVQ0c21vZkllRQ?oc=5" target="_blank">US fourth-quarter productivity growth revised down, but trend remains solid</a> <font color="#6f6f6f">Reuters</font>
FinanceHow does the current global oil crisis compare with the 1973 oil embargo?
The 1973 oil embargo removed 4.5 million barrels per day from global supply. Today, that figure stands at 20 million.
FinanceSmall comforts fade and big worries grow as fuel prices surge globally - AP News
<a href="https://news.google.com/rss/articles/CBMiigFBVV95cUxOTkpWWTV3NWptSm9WaEc5cjZObC1ya2J6M3V1cnJVUmdBSUhJaHlHR3NMNDJia3FBNk55Z1BUdUM4TTI3NThPRkFZRFE1by1LRU40V3FkQi1lSUNBRkdmTU1pUEFIZEF2bldRVVlkOVJvcnRoQ21jUm5hWnM4T2RoREYwT2NGc0RXVVE?oc=5" target="_blank">Small comforts fade and big worries grow as fuel prices surge globally</a> <font color="#6f6f6f">AP News</font>
FinanceEU says Mercosur free trade deal will start May 1, accounting for 25% of global GDP
A landmark free trade deal between the European Union and four South American countries will begin on May 1 after more than a quarter-century of negotiations and new global economic uncertainty unleashed by tariffs, critical mineral controls and the war in Iran.
Mysterious trading patterns follow Trump into war
<div>Data: Yahoo Finance; Chart: Erin Davis/Axios Visuals</div><p>An epidemic of suspicious trading has emerged around President Trump's <a href="https://www.axios.com/2026/03/23/trump-iran-economy-bonds" target="_blank">most consequential decisions</a> — each time, just minutes or hours before he rattles global markets, according to exchange data.</p><p><strong>Why it matters:</strong> As the <a href="https://www.axios.com/world/iran" target="_blank">Iran war</a> sends prices soaring for ordinary Americans, a select few appear to be profiting in plain sight. It's precisely the kind of alleged corruption Trump built his political career <a href="https://www.politico.com/story/2016/07/full-transcript-donald-trump-nomination-acceptance-speech-at-rnc-225974" target="_blank">railing against</a>.</p><hr><ul><li>Democrats, favored to win the House in November, already are <a href="https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=415221" target="_blank">lay...
Did this story change how you see things?
Stories like this only matter when people see them. Help us get verified journalism in front of more eyes.
The Verity Ledger curates verified investigative journalism from trusted sources only.
See our sourcesMost Read This Week
Fentanyl found inside Barbies sold at Missouri discount store, police say
US moves to soften capital rules: ‘Big banks can declare mission accomplished’
Senate deal reached to cap insulin costs
The West's historic snow drought could bring water shortages, wildfires
Pentagon's limits on press access unconstitutional, US judge rules - Reuters
