More interest rate hikes are expected this year after new ASB figures showed another increase in inflation in November.
According to the latest ABS data, inflation spiked to 7.3% over the year to November as the cost of housing, food, and travel increased.
The latest 7.3% inflation surged from 6.9% in October, putting the pressure on the Reserve Bank to raise interest rates, with economists predicting a 0.25% rise in the cash rate next month, 9news reported.
The cost of living has been the RBA's biggest consideration when deciding on how fast and how far to lift interest rates.
The ABS said Australian retail turnover grew 1.4% in November to a new record high, driven by Black Friday sales, with retail turnover increasing in all states and territories.
The RBA hiked rates eight consecutive times last year. After cutting rates to an unprecedented 0.1%, Australia’s central bank started one of the most aggressive monetary tightening programs in recent history, raising the OCR eight times to a record high of 3.1% at its final meeting in 2022.
The last time Australia had an interest rate above 3% was in October 2012, when the median Australian house price was just under $520,000.
Since the rate hikes began in May, the average borrower with a $500,000 mortgage now has to fork out an additional $834 a month to meet repayments, while someone with a $1.5 million mortgage has to pay an eye-watering $2,501 extra every month, 9news reported.
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