What’s in store for rising prices?

Australian’s have been struggling with inflation for more than two years now. So, what is causing these sustained price hikes?

One driver is a shortage of materials or commodities. Natural disasters like floods and fires can trigger shortages increasing the price of fruit and vegetables. Other times its geophysical disruptions, such as Russia’s invasion of Ukraine which squeezed Europe’s energy supply and interrupted the export of Ukraine’s raw goods to the global market.

• Labour shortages
• Greater demand for products and services, especially targeted at the housing market.

In order to control inflation, the Reserve Bank of Australia (RBA) has repeatedly lifted the cash rate to slow spending and reduce demand. But that has also pushed up the cost of mortgages and, consequently rents.

So who is most affected, where are we at now and what is the future of high prices?

Click here to read more about what is in store for rising prices. We have summarised the key points highlighted above as well as also outlining some handy tips to save on common costs in order to save money and clean up your finances in these uncertain financial times.