00:02This Sydney market stall owners trying to get shoppers to loosen their purse strings.
00:07Here's a basket for you. Thank you. Great.
00:10It's tough because so many customers are feeling the pinch.
00:13Whatever money we can scrape by with every fortnight, we do our best, yeah.
00:17Living I guess in general, fuel prices and all that kind of stuff, yeah.
00:21What about you? Oh yeah, just living. I'm a good student, so I don't, yeah, food.
00:26Insurances are probably my worth, car insurance, household insurance.
00:31The latest inflation numbers show most prices are still rising too fast.
00:36Inflation fell to 4% in the year to May, but the measure the Reserve Bank watches ticked up to
00:433.6%.
00:44The trimmed mean measure reflects these broader price pressures that we've identified for some time,
00:49including in our budget, coming from and made worse by the war in the Middle East.
00:54Over the past 12 months, power prices surged 21% as energy rebates were used up.
01:01Rents and the cost of building new homes accelerated.
01:04And it's paying for his stall that's the hardest for Sam Famularo to absorb.
01:10Rent is a high, very high costing, alright.
01:13It's always a forever increase.
01:15The problem for the Reserve Bank is that underlying inflation keeps moving in the wrong direction
01:20and further away from its target band of between 2% and 3%.
01:24It means households and businesses already under the pump could be in for further financial pressure.
01:30That will put the Reserve Bank on notice to increasing interest rates at the next meeting in August.
01:38That could be enough to tip the economy over.
01:40Which way rates go now is a coin toss in an economy where every dollar counts.
01:45That's a coin toss in a coin toss, right?
01:46That would be enough to pay for thelevator bank of the current meeting.
01:47Good off.
01:47At the beginning of the New Yorker Register.
01:47First step by Alright.
