Sky News Political Editor Andrew Clennell looks at Australian Bureau of Statistics figures revealing why the Reserve Bank’s forecast interest rate rise tomorrow could be “as high as 0.5 per cent”.
“Admittedly, the increase in spending here is pushed along by inflation, but have a look at this – another monthly rise in spending – 0.6 per cent,” Mr Clennell said.
Mr Clennell said spending on food, such as in cafes and restaurants, is up by more than one per cent month on month.
“Surely the news on electricity price rises from the budget, together with higher rates and rents, will begin to slow spending and therefore inflation next month at least,” he said.
“But that won’t spare households and businesses from rate rises tomorrow.”
Source: Sky News
