Oxford Economics Australia’s chief economist Ben Udy has warned that household spending data released today paves the way for the RBA to raise interest rates this afternoon.
Bui, meanwhile, estimates that each rate increase will add an additional $120 to the average monthly mortgage payment.
Both economists warn the pressure on households will not ease any time soon, with the coming months set to be even worse for ordinary Australians.
“Global oil prices have risen to new highs, which will feed into higher fuel, transportation, fertilizer and food costs in the coming months,” Udy said.
“The second quarter will be more difficult for the average household… Moreover, the fuel shock will start to have secondary effects on prices in other sectors, such as construction costs, industrial products, fertilizer and food prices – especially with the Strait of Hormuz still effectively closed,” Bui wrote.
