Inflation rises as markets weigh another RBA rate rise

Inflation has risen again, putting a possible Melbourne Cup Day rate rise in focus. What is driving prices, and how are investors responding? Australia’s annual headline inflation rate rose to 4.3 per cent in September, while the Reserve Bank’s preferred trimmed mean measure edged up to 3.6 per cent. Both measures moved further above the RBA’s 2 to 3 per cent target band, raising the prospect of another rate rise on Melbourne Cup Day. EQ Economics managing director Warren Hogan discusses what is driving price pressures and whether another rate rise could bring inflation under control. The ASX 200 gave back its early gains to finish flat. Energy shares fell the most, while technology stocks led the market. TenCap portfolio manager Jun Bei Lui discusses how investors are responding to the inflation figures, renewed confidence in artificial intelligence and a $260 million fine for Star Entertainment. In this episode: • What is driving inflation, and how much comes from overseas pressures or the domestic economy • Whether another rate rise could bring inflation under control, and the role of government spending • How inflation figures and interest rate decisions around the world could affect investors • Whether confidence in artificial intelligence is justified as major company results approach • What Star Entertainment’s fine could mean for the company and its investors • Where investment opportunities may lie in a changing market