THE SQUIZ
The Reserve Bank is expected to raise interest rates again today by 0.5%, taking the official cash rate to 2.35%, putting more strain on millions of households already dealing with cost of living pressures. Given the cash rate was at a prolonged record low of 0.1% in April and Reserve Bank Governor Philip Lowe’s declaration last year that rates wouldn’t go up until 2024, the rapid pace of the rate rises over the past 5 months has given many mortgage holders whiplash. If it goes as expected, today’s announcement means households servicing a $500,000 mortgage will have to find an extra $150/month. Since the hikes started in April, it’s an extra $530/month. Ouch…

YEP, LIFE IS GETTING MORE EXPENSIVE…
And those increasing costs aren’t set to come down any time soon. PM Anthony Albanese has confirmed the federal government’s cut to fuel excise will end this month – he says it was a difficult decision, but it’s too much to continue to cover. The cost of fuel has been reduced by 22c/litre since March, and Treasurer Jim Chalmers says the return of the full 44.2c excise will boost revenue. He’s also tasked the competition watchdog with cracking down on price gouging to ensure the price at the pump is no higher than necessary. But it’s not just the price of fuel going up with renters struggling, electricity bills are sky high – and watermelon is a contender to become the next iceberg lettuce…

SO WHAT’S THE SOLUTION?
Well, 4.7 million low-income Aussies on welfare payments will get an indexation boost (aka an adjustment for inflation) on 20 September. It’s the biggest half-yearly rise in more than 30 years for allowances (like Newstart for the unemployed) and 12 years for pensions. Still, the Australian Council of Social Service boss Edwina MacDonald says it isn’t enough. That’s because “currently jobseeker is at $46 a day, youth allowance is at $38 a day and what we need in order to bring it up to the poverty line is to bring it up to at least $70 a day”. As for the rolling maul of price hikes that every Australian is dealing with, interest rate increases are the Reserve Bank’s way of putting downward pressure on inflation. Still, economists are divided on how high rates and inflation could go, but there’s agreement that we’re still climbing the hill. The Albanese Government’s new Budget, which will have to wrangle all of this, will be delivered on 25 October.