For the last few years there has been much talk of a “cost-of-living” crisis in Australia and of “falling living standards”. This has flared up again lately with the pickup in inflation resulting in a renewed fall in real wages.

The RBA's decision to leave rates on hold at 4.35% was no surprise with the money market pricing in no change ahead of the meeting and all 26 economists surveyed by Bloomberg expecting the same.

A stagflationary hit of higher inflation and weaker growth is now baked in with the uncertainty being how long it’s sustained. The flow of ships through the Strait of Hormuz remains the key - as it has been since day one of the War.