According to the Australian Bureau of Statistics, the consumer price index (CPI) climbed to 3.8% over the past year as of December, an increase from November’s 3.4%. This figure surpassed the anticipated 3.5% predicted by economists.

The rise in costs is particularly noticeable in essential goods. Prices for coffee, tea, and cocoa have surged by 15.3%, while the cost of lamb and goat has escalated by 13.4%. Beef and veal have also seen a significant increase, up by 10.8%.

Additionally, should interest rates rise by 0.25%, it could translate to an extra $115 monthly on the average $694,000 mortgage fee.

In total, these hikes could lead the typical Australian household to spend an extra $2,192 throughout the year.

The Reserve Bank of Australia (RBA) is set to announce its next decision on interest rates this coming Tuesday.

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