‘Clear and present danger’: fuel prices could rise by 30c a litre across Australia under IMF scenario

IMF’s World Economic Outlook shows how a worsening Middle East crisis could affect global growth and inflation An International Monetary Fund scenario where global oil prices jump to $US130 a barrel over coming months could push Australian petrol prices up by another 30 cents and pile pressure on the Reserve Bank to hike interest rates, economists say. In its latest World Economic Outlook, the IMF modelled the impact on global growth and inflation from a worsening Middle East crisis that extended into next year, highlighting the “clear and present danger” to a resilient global economy from turmoil in commodity and bond markets. Continue reading...