More than half of Australians are being pushed to the financial brink with a new poll suggesting millions of households would struggle to pay an unexpected bill.
Australia’s Cost of Living Crisis: High Interest Rates and Inflation Push Aussies to Financial Brink
July 18, 2023 – A new poll suggests that over half of Australians are teetering on the financial edge as the country grapples with a severe cost of living crisis, fueled by soaring interest rates and inflation. The survey indicates that millions of households would struggle to pay an unexpected bill, highlighting the extent of the economic hardship many Australians are currently facing.
The Australian Bureau of Statistics latest quarterly figures reveal that Australia’s annual inflation rate has hit 7%, a stark indication of the escalating cost of living crisis. This is coupled with twelve increases to the interest rate since May 2022, which have added to the financial strain experienced by many households.
The data shows that the burden of these economic challenges falls disproportionately on lower-income households, renters, and first-time home buyers. Many are finding it increasingly difficult to keep up with rising costs, from groceries and utilities to housing and healthcare.
“Despite aggressively fighting inflation with higher interest rates, cost-of-living pressures remain intense for many Australians,” said Dr. Sarah Mitchell, a senior economist at the University of Sydney. “This has resulted in a significant number of households being pushed to the financial brink.”
The crisis is also hitting young people hard, with increasing numbers facing financial stress due to rising education costs, insecure work, and the skyrocketing property market.
In response to these challenges, there have been calls for more robust government action. Experts suggest that redistribution and increased support for low-income households could help alleviate the pressure.
“The situation requires urgent attention and action,” said Liam Davis, a policy analyst at the Australian Council of Social Service. “We need to see measures that address income inequality and provide adequate support for those most affected by the cost of living crisis.”
As the crisis deepens, the Australian public waits anxiously for solutions. With no immediate end in sight to the rising costs, the need for effective strategies to tackle high inflation and interest rates becomes increasingly critical.
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