Treasurer Jim Chalmers has shared a grim update for motorists, saying oil prices are not expected to drop to normal until the end of the decade.

The Sydney scientist who was a colleague of the late Professor Richard Scolyer was a driving force behind the breakthrough treatment.

Australia's unemployment rate unexpectedly rose to 4.7 per cent in September, above the 4.6 per cent economists had forecast and the highest reading since October 2021, the Australian Bureau of Statistics said. Nearly 40,000 Australians fell out of work, and the ABS revised August's rate up to 4.7 per cent. Markets are watching how the figures affect the Reserve Bank of Australia's rate path.

The Reserve Bank of Australia has raised the cash rate to a 15-year high of 4.6 per cent and may keep it there until 2027 to balance demand and constrained supply, according to a new report. The report does not rule out further increases. Inflation remains close to 4 per cent, above the RBA's 2–3 per cent target band. The continuing Middle East war is straining supply chains and adding to cost-of-living pressures, cooling expectations for a rate cut in the middle of next year.

The Australian Bureau of Statistics reported that Australia’s CPI rose 4.0% year on year in August, a three-month high, led by a 5.7% increase in housing costs alongside higher electricity and new home construction costs. The trimmed mean measure of underlying inflation is expected to hold at 3.6%. Ahead of the release, Westpac had forecast the Reserve Bank of Australia could raise rates again in November to counter persistent inflation pressures.

Markets widely expect the Reserve Bank of Australia to lift the cash rate to 4.6% at its September meeting. If implemented, the move would leave Australia with the second-highest policy rate among advanced economies, behind Iceland. Australia’s core inflation rate stands at 3.6%, one of the highest in the developed world, underpinning expectations of another increase.

Australia’s final 2025-26 budget outcome shows the deficit narrowed by about A$6 billion compared with the May projection. The improvement reflects A$1.4 billion less in government spending and A$4.6 billion more in tax receipts. Markets broadly expect the Reserve Bank of Australia to raise rates by 25 basis points on Tuesday to 4.60%, a 15-year high.

U.S. President Donald Trump has threatened to ban diesel exports, citing record domestic fuel prices and the war in Iran. In Australia, diesel has risen 7% to nearly $3 a litre and national reserves hold just 32 days of supply. The United States, the world’s largest diesel exporter, ships about 1.2 million barrels a day—mainly to Latin America and Europe—helping offset shortages linked to the prolonged closure of the Strait of Hormuz and bans on refined-fuel exports by Russia and China.

Market pricing for a Reserve Bank of Australia rate hike next Tuesday has risen from 72% at the start of the month to 88% as inflation stays high and the Middle East conflict keeps oil and fuel prices elevated. Some economists say the RBA could raise rates again in September and November, potentially delivering back-to-back moves to curb persistent inflation. They also say the central bank could even consider a larger one-off increase of 40 or 50 basis points.