How are Oil Prices, AI & Housing Affecting the Economy? August 2026 Economic Update
In our August 2026 update, we explain why inflation remains above the RBA’s target, how higher oil prices are affecting inflation, and what recent developments in the housing market and data centre investment tell us about the economy. We also discuss the recent cash rate decision.
We’ve released a new, ready to use worksheet for the classroom to help students engage with and apply these ideas: https://www.rba.gov.au/education/teacher-materials/learning-activities/.
Key topics covered:
0:00: Intro
0:23: Inflation and oil prices
2:26: Economic growth
2:56: Housing prices
5:24: AI and data centre investment
6:03: The labour market
6:45: Where is the economy heading?
7:04: Cash rate decision
Watch the May 2026 video: What do Higher Oil Prices Mean for Inflation? https://www.youtube.com/watch?v=JOkH29VQYlU
Explore more resources for teachers and students on our website: https://www.rba.gov.au/education/
Read the full Statement on Monetary Policy (August 2026) – https://www.rba.gov.au/publications/smp/2026/aug/
Read the Monetary Policy Decision (August 2026) – https://www.rba.gov.au/media-releases/2026/mr-26-19.html
