Danger zone: why war in the Middle East has landed the RBA’s inflation fight in tricky territory

A US F-35 fighter jet. The US military operations against Iran and the subsequent closure of the Strait of Hormuz have had a lasting effect on the global economy, the RBA governor says. Photograph: Anadolu/Anadolu Agency/Getty Images

The fight against inflation has entered a new, more dangerous phase.

For years, the Reserve Bank has been attempting, as gently as possible, to steer inflation back to its 2.5% target while trying to retain as many of the post-pandemic job gains as possible.