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The Times

War could add an extra 5% to prices in Australia – but there’s one sector that shields the economy

  • Written by George Verikios, Adjunct Professor of Economics, Griffith University

A drawn-out war in the Middle East could add an extra 5% to existing inflation in Australia, our new modelling shows.

We looked at the likely impacts of two different scenarios: a moderate disruption with the war ending in mid-April, and a drawn-out war ending by September.

We found higher fuel costs would affect freight, food production and...

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