Feeling lucky? Like Dirty Harry, Phil Lowe must wonder how many shots he has left

Rents nationally have jumped by 4.9 per cent over the past 12 months. Yet there are large differences across the country – in Melbourne, they’ve lifted by 3.1 per cent, in Sydney by 4.8 per cent while Brisbane tenants have faced a 7 per cent hit.

A lift in interest rates is unlikely to bring extra rentals into the market. But higher interest rates could force tenants to give up on the rental market, reducing demand.

One of the big contributors to inflation in the March quarter was the education sector. Prices increased by 5.3 per cent in the quarter, the largest jump for the sector in five years.

Education is made up of three areas. Primary and pre-school education costs actually fell by 0.8 per cent in the quarter, secondary education costs lifted by 4.9 per cent while tertiary costs accelerated 9.7 per cent.

That big lift in tertiary education costs were due, according to the bureau of statistics, to the Jobs-Ready graduate package of 2020 and to higher indexation fees on university courses. Those course fees have gone up because of past inflation.

Lovers of milkshakes and cheese are facing huge increases in the prices of their favourite products. The price of dairy products has increased by 14.9 per cent over the past year, the biggest jump since 1982 when the country was being ravaged by drought.

The figures also show inflation for services is still climbing. Inflation on goods is actually easing.

That suggests there’s enough money – and demand – in the economy for people to push up the prices for services which they either need or desire.

Loading

All of these different strands mean the RBA board – chastised by last week’s review of the institution – faces a tough decision when sits next Tuesday.

After a record 10 consecutive rate rises, the board paused in April, ostensibly to wait on Wednesday’s inflation data.

The numbers are in. Business owners and home buyers are now wondering just how lucky they will be when the RBA board breaks from its meeting.

Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletter here.