Fuel rise stretch inflation and rates

Mortgage payments could rise if petrol prices continue to rise, Peter Costello, the treasurer, said yesterday. The price of fuel has risen 23 per cent in the past few months. Reserve Bank of Australia deputy governor Glenn Stevens confirmed the interest rate could rise. Second round effects have already been seen, with Dairy Farmers last week marking up the price of milk in the wake of higher transport costs caused by fuel prices.

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