Household Spending Surge Adds Pressure on Labor and RBA

A new report from Australia's central bank shows that household spending is surging at its highest annual pace in three years, adding pressure to the government and the Reserve Bank of Australia (RBA) to tackle inflation.

The data reveals that rising costs for rents and takeaway food are major drivers behind price growth, contradicting government claims that the Iran war is the main cause.

As a result, economists from three of the four major banks now expect the RBA to increase interest rates as early as next month, with some predicting two rate rises may be necessary to control stubborn price growth.