'Impossible to get ahead': Canberra inflation rate rises above national average
The ACT's inflation rate jumped to 4.7 per cent in the 12 months to September this year, and with households curbing costs some Canberra business owners have been left without customers and unable to afford wages.
In the ACT, household inflation has reached 4.7 per cent, surpassing the national average of 4.3 per cent. Small businesses in Canberra are experiencing a decline in customer traffic, and the Reserve Bank of Australia (RBA) is anticipated to raise interest rates again, to 4.85 per cent. This move is expected to further impact household spending.
Dr John Hawkins, a senior lecturer in economics at the University of Canberra, attributes this inflation surge to global oil prices, with fuel, electricity, childcare, and school fees contributing significantly in the ACT. Despite absorbing higher costs, small business owners like Casey Johnston, who runs a burrito joint, are struggling with declining sales due to a lack of foot traffic.
Johnston notes that people are not stopping by as they once did, making it difficult to maintain operations. Similarly, hairdresser Elanor has cut down on discretionary spending, avoiding coffees, holidays, and dining out. The University of Canberra's Dr Hawkins warns that the RBA's future rate hikes will likely lead to higher mortgage payments and a slowdown in consumer spending, making it even more challenging for households to afford rising costs.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
