Ben Udy, the chief economist at Oxford Economics Australia, has issued a cautionary note about the latest household spending figures, indicating they could prompt the RBA to hike interest rates later today.
In a related analysis, Bui projects that each rate increment might add an additional $120 to the average monthly mortgage payment.
Both financial experts caution that relief for households is not on the horizon, predicting that the next few months will pose even greater challenges for Australians.
Udy pointed out that, “Global oil prices have surged to new peaks, which will inevitably lead to increased costs in fuel, transportation, fertilizers, and food in the coming months.”
Bui elaborated, “The second quarter is expected to be particularly challenging for the typical household. Moreover, the impact of higher fuel prices will ripple through various sectors, affecting costs in areas like construction, manufactured goods, and especially in fertilizers and food, exacerbated by the ongoing closure of the Strait of Hormuz.”
