Aussies need to 'get used to' soaring supermarket costs, the RBA warns
Sourse: dairynews.today
Australians are being cautioned about ongoing increases in supermarket prices, with expectations that certain costs won't revert to pre-pandemic levels.
A top economist has alerted Australians to the likelihood that milk prices will never return to pre-pandemic levels, urging citizens to accept ongoing cost of living challenges. Speaking at the Australian Finance Industry Association Conference in Sydney, Sarah Hunter, Assistant Governor in economics at the Reserve Bank of Australia (RBA), emphasized the permanence of elevated supermarket prices.
"When you do your weekly shopping, it just costs that much more," she stated. Key staples such as milk, bread, and petrol are notably more expensive, and the RBA is not aiming to reduce these price levels. Despite these challenges, Ms. Hunter highlighted that household spending is looking up, with stress indicators declining.
She noted that wages are growing faster than prices, which means workers are taking home more in real terms compared to a year ago. With inflation expected to remain within target ranges, the RBA has taken measures such as cutting the cash rate to 3.6% to support the economy.
"When you do your weekly shopping, it just costs that much more," she stated. Key staples such as milk, bread, and petrol are notably more expensive, and the RBA is not aiming to reduce these price levels. Despite these challenges, Ms. Hunter highlighted that household spending is looking up, with stress indicators declining.
She noted that wages are growing faster than prices, which means workers are taking home more in real terms compared to a year ago. With inflation expected to remain within target ranges, the RBA has taken measures such as cutting the cash rate to 3.6% to support the economy.
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