Australia’s already elevated cost of living prices are expected to worsen, with Treasurer Jim Chalmers warning inflation could rise beyond 4.5%.
This comes as on Tuesday, March 17, Reserve Bank of Australia announced it would lift interest rates by 0.25 percentage points to 4.1 per cent, marking its second increase in two months.
Minutes from the bank’s monetary policy board revealed a split among policymakers: five members supported an immediate interest rate rise, while four preferred to wait until May for clearer data on 2026 economic conditions, including the impact of the Middle East conflict. Despite the divide, all members agreed that further rate increases may be necessary.
Greens leader Larissa Waters had urged the Reserve Bank not to increase rates, arguing it would not address the root causes of inflation.
“A rate rise will not stop the chaos of this illegal war that is driving inflation,” she told The Guardian.
“People are already struggling with price gouging at the petrol pump and the supermarket. The RBA should not lift rates when this latest inflation pressure is a supply side mess caused by a pointless war that rate rises can’t stop.”
Some Australians are already feeling the strain. Pensioners Tharsos and Despina Nicolaou told The Daily Telegraph they have relied on savings to manage rising expenses.
“Everything is going up. What can you do about it? Nothing,” 83-year-old Mr Nicolaou said.
“We are pensioners and our pension is not enough for just living. If you don’t have money saved in the bank, forget about it. You suffer. Everything goes up almost every week. We are living off our savings.”
Others report being less affected. Private investigator Nick Koussidis, 55, said his stable income has shielded him from the worst of the pressure, though concerns remain.
“I’m not that affected by the price increases due to earning a good income and a stable household,” he told The Daily Telegraph.
“I want the government to do better to avoid inflation. There’s always anxiety especially about the future and if prices continue to rise. There are others who are less lucky than me.”
Source: The Daily Telegraph
