The Australian dollar has today plunged to its lowest point in two and a half years as fears of a global recession mount and energy prices keep rising.
Sky News Business Editor Ross Greenwood says there is a fear power prices could rise by 35 per cent – which would negatively impact the inflation rate.
“Given the fact that there are other signals that maybe inflation hopefully will ease, that’s exactly the sort of thing that feeds into everything,” he said.
“It doesn’t matter whether it’s manufactured goods, whether it’s food, whether it’s farm sector prices, all these things are reliant on energy prices remaining relatively low.”
Source: Sky News
