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Inflation is forecast to potentially reach 5% this year, driven by high oil prices affecting 55% of the consumer price index basket directly and indirectly. The Reserve Bank of Australia faces critical decisions on interest rate rises at upcoming meetings, with market expectations shifting as oil prices remain elevated due to geopolitical tensions. Share markets are experiencing sell-offs due to multiple factors including inflation concerns, higher interest rates, AI uncertainties, and private credit fund issues, though historical patterns suggest markets typically bounce back following war-related downturns. Get the latest news » https://7news.com.au 7Plus » https://7plus.com.au/ More from Sunrise » https://sunrise.com.au Subscribe to Sunrise » https://7news.link/SunriseSubscribe Subscribe to the Sunrise newsletter » http://7sunrise.link/Newsletter Connect with Sunrise online: Facebook » / sunrise Instagram » / sunriseon7 TikTok » / sunriseon7 X » https://x.com/sunriseon7 #SunriseOn7 #7NEWS