In short:
Household inflation has risen to 4.7 per cent in the ACT, with the national average being 4.3 per cent.
asserted
average → rise → ACT
Canberrans are continuing to curb their spending, with small businesses seeing declining foot traffic.
asserted
businesses → continue → traffic
An economics lecturer says inflation is not expected to come down anytime soon, with another rate increase on the horizon.
asserted
inflation → say → horizon
The ACT's inflation rate jumped to 4.7 per cent in the 12 months to September this year, and now sits above the national average of 4.3 per cent.
And with the RBA expected to lift the cash rate again tomorrow to 4.85 per cent — the highest rate since the 2008 global financial crisis — many households are doing all they can to curb their costs.
asserted
they → jump → costs
But for some Canberra business owners that means sales are down, with no end in sight.
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end → mean → sight
"Nobody's out and about eating and obviously that hurts us," Casey Johnston, who runs a burrito business in Tuggeranong with her partner, said.
"This year has been pretty tough."
asserted
year → eat → partner
Ms Johnston said she was used to business "fluctuating" in the hospitality sector, but sales were "a lot lower" than past years.
asserted
sales → say → years
"I feel like our foot traffic, people walking along the street just to find somewhere to eat for dinner or lunch, is definitely declining," Ms Johnston said.
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Johnston → feel → dinner
"People bring people in [with] small business, and when there is no people, people are not stopping by."
asserted
people → bring → business
Ms Johnston said they were also absorbing rising business costs including products and rent, rather than passing those costs onto customers.
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they → say → customers
"[It] is a hard battle because we can't increase our prices for our consumers, but we're definitely taking the hit of our products being more expensive ourselves," she said.
"
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she → increase → hit
We can't always afford wages and that kind of thing.
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We → afford → thing
"If people aren't here then the employment is not necessarily needed all the time, and that can make things really tricky."
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things → need → ?
Interest rates projected to rise again
Senior lecturer in economics at the University of Canberra Dr John Hawkins said global oil prices were the main driver for rising inflation rates.
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prices → project → rates
In the ACT specifically, the biggest drivers were fuel, electricity, childcare and school fees, new housing builds, and furniture, according to the Australian Bureau of Statistics.
uncertain
drivers → accord → Statistics
"You get these variations that are quite random," Dr Hawkins said.
asserted
Hawkins → get → variations
Dr Hawkins also warned the Reserve Bank of Australia was likely to once again hike up interest rates.
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Bank → warn → rates
"There's an 80 per cent chance that [homeowners] will probably be paying 0.25 per cent more on their mortgages from tomorrow, and the financial markets think if the Reserve Bank doesn't move tomorrow, they'll probably move in either December or early next year," he said.
asserted
he → be → December
"Raising interest rates will lower inflation because it will slow down the economy.
"
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it → raise → economy
By raising interest rates, it'll make saving more attractive, so people will spend less and save more."
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people → raise → more
Elanor, a hairdresser, said she has personally already cut down "literally everything" when it comes to discretionary spending.
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it → say → spending
"So no coffees out, no more expenditures," she said.
asserted
she → say → ?
"Holidaying, going away, just being able to eat out — so not going out to restaurants, even though we've got all these beautiful restaurants and everything around us — no, I don't spend on that anymore."
asserted
I → go → that
Elanor said her workplace's clientele base had largely remained the same, but people were booking hair appointments less frequently than they normally would.
"It is impossible to get ahead at the moment, especially here in Canberra," she said.
asserted
she → say → Canberra
"The cost of living is just skyrocketing."
asserted
cost → skyrocket → living
The Aporia