There's good news for lenders on the way - and bad news for borrowers, and for the economy. It may also mean a short-lived honeymoon for the new government.
The Reserve Bank of Australia has raised interest rates by more than expected as it tries to get inflation under control.
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At its meeting in June, it decided to put an extra half a percentage point on its base rate. This is the rate that the commercial banks and other institutions use to decide their own lending and borrowing rates. When the Reserve Bank raises the rate, so do the rest.
"Inflation in Australia has increased significantly," the central bank's governor, Philip Lowe, said.
The main cause of rising prices is international: the war in Ukraine has restricted supplies of gas from Russia.
But there are also home-grown factors. The Reserve Bank's governor cited labour shortages because of a "tight labour market". "The floods earlier this year have also affected some prices," he said.
The new Labor government is anxious. The Federal Treasurer has stepped in to urge the national competition regulator to monitor and scrutinise power prices. Jim Chalmers expressed his "deep concern" to ACCC chair Gina Cass-Gottlieb.
The way the world is now interconnected continually surprises. War in Europe pushes up borrowing costs in Australia - and floods in Australia cause fast-food shortages.
KFC has announced it will be blending lettuce and cabbage in its products in stores throughout NSW, Victoria, Queensland, ACT and Tasmania due to shortages of lettuce.
A statement from the fast food company blamed the recent floods.
"We've hit a bit of an Iceberg and are currently experiencing some lettuce supply chain disruptions due to the impacts of the recent Queensland and NSW floods," the statement said (was the reference to Iceberg a little joke, one wonders - iceberg lettuce, geddit?).
"We're using a lettuce and cabbage blend on all products containing lettuce until further notice. If that's not your bag, simply click 'customise' on your chosen product and remove lettuce from the recipe."
Even the war in Ukraine affects the cost of Australian lettuce. Vegetables are moved by truck and are sensitive to diesel prices, pushed up by Russia's invasion of Ukraine.
And - sorry to be too gloomy - the wet weather may be nice for mould in the house.
Heavy rain across much of the country has led to perfect mould-breeding conditions.
But - not to be too gloomy - the governor of the Reserve Bank thinks inflation will fall next year.
"Today's increase in interest rates will assist with the return of inflation to target over time," Mr Lowe asserted.
Pain for a gain, he thinks.
THE NEWS YOU NEED TO KNOW:
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- Reserve Bank lifts cash rate to 0.85
- KFC turns to cabbage as lettuce shortage hits
- 5000 mafia members operating in Australia
- Why is lettuce so expensive? Costs have shot up, and won't return to where they were
- Treasurer outlines 'deep concern' to ACCC over energy crisis
- Big Banana, Big Prawn, mini Australia? Why these tiny islands are going viral
- Mould is the 'tip of the iceberg' for health problems and home deterioration
- Lee Kernaghan documentary set for world premiere in the outback
- Same problem, bigger number': Grantham's saviour says he can help flood-prone Lismore
- Albanese's got a tough job ahead dealing with jobs
Steve Evans
Steve Evans is a reporter on The Canberra Times. He's been a BBC correspondent in New York, London, Berlin and Seoul and the sole reporter/photographer/paper deliverer on The Glen Innes Examiner in country New South Wales. "All the jobs have been fascinating - and so it continues."
Steve Evans is a reporter on The Canberra Times. He's been a BBC correspondent in New York, London, Berlin and Seoul and the sole reporter/photographer/paper deliverer on The Glen Innes Examiner in country New South Wales. "All the jobs have been fascinating - and so it continues."
