RBA inflation fight stymied by oil spike, data center demand

The RBA's three rate hikes in 2026 have failed to bring inflation to target, with the breakdown of the US-Iran ceasefire, rising oil prices, and surging data center investment adding upward pressure. The central bank's task is becoming harder, suggesting a prolonged period of above-target inflation and potential further tightening. This matters because it signals persistent inflation in Australia, which could force the RBA to keep rates higher for longer, impacting global rate expectations.