The cost of living is adding up, but this week one set of numbers will matter the most.
On Wednesday, inflation figures for the three months to June will be released.
Economists say if prices have climbed by 1 per cent or more then it’s likely the Reserve Bank of Australia will hike rates again next month.
However, if the figure is less than that, Australia may finally be done and dusted with interest rate increases.
Wednesday’s inflation figures would be “absolutely make or break” for whether Australians are to be hit with another interest rate rise or not, Rich Insight economist Chris Richardson said.
While inflation was still too high, it was heading in the right direction, Richardson said, adding that markets were tipping one last rate rise to come.
Last month, the RBA opted to keep interest rates on hold after delivering 12 rate hikes in quick succession since May last year.
But outgoing RBA Governor Philip Lowe warned it was likely more hikes would be needed to bring inflation down to the target band of under 3 per cent annually.
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Australians with an average home loan are now paying an additional $1264 in monthly mortgage repayments since the cash rate was 0.10 per cent in April 2022.
Deputy Opposition Leader Sussan Ley said the Albanese government was failing to provide any relief for Australians struggling under a mountain of financial burdens.
“Behind all of these statistics are real people who are hurting,” Ley said.
“And they’re not getting what they need from the Albanese government. They’re not getting a proper plan on inflation.”
Labor Communications Minister Michelle Rowland said the government understood people were “doing it tough”.
“This government is seeking to provide whatever assistance it can that doesn’t unnecessarily add to inflation,” she said.
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