Australian economy operating ‘as tight as a drum’

Any price increases being generated within the economy are likely to be passed through to final prices, pushing inflation even higher, writes KPMG Australia Chief Economist Brendan Rynne.

The latest labour force data shows labour market outcomes consistent with expectations, with the unemployment rate remaining stable at 4.3 percent and net employment growth of nearly 18,000. Nearly 53,000 full time new jobs were also created over the month, more than covering the fall of around 35,000 part time roles. The big driver of macroeconomic outcomes in the near term is how the Reserve Bank of Australia (RBA) Board will respond to the oil price shock from the Middle East conflict. ...

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Authors: Brendan Rynne

Published Date: 17 April 2026