Aird said this delay would probably have a macroeconomic impact.
“There is a lag between changes in the cash rate and the impact it has on monthly cash flow for borrowers on a floating rate mortgage,” he said.
“At CBA, for example, by December the impact of already announced rate rises on monthly cash flow for mortgage holders on variable rate loans will be a four-fold increase compared to July.
“As such, there is a strong case to slow the pace of rate rises given we expect consumption growth to slow significantly as the lagged impact of rate hikes impacts many households.”
Financial markets expect the official cash rate to peak at 3.6 per cent by March and then edge down by Christmas 2023.
The RBA board has six meetings between now and March. To reach 3.6 per cent, it would have to lift the cash rate by half a percentage point at one meeting and then a quarter percentage point at each other meeting.
It would amount to the fastest, and most aggressive, increase in interest rates since before the 1990-91 recession, when the bank had interest rates at 17.5 per cent.
Aird, who was one of the first economists to tip the RBA would start tightening monetary policy in 2022, believes the central bank – which has increased rates by half a percentage point at its last three meetings – may slow its increases to a quarter of a percentage point.
He said official interest rates would probably peak at 2.6 per cent before the RBA cut them in the second half of next year, predicting a combined half percentage point reduction in the cash rate at that time.
Data from National Australia Bank suggests the combination of higher interest rates and inflation is starting to bite.
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Its measure of financial hardship showed the proportion of Australians struggling with the cost of living rose sharply to 35 per cent in the June quarter. It was at a survey-low of 29 per cent in the March quarter.
Hardship is most widespread in Western Australia, at 43 per cent, and has been climbing in the state since the start of last year. Inflation in Perth is at a nation-high of 7.4 per cent.
The biggest increase in hardship was in NSW and ACT, where it jumped from 26 per cent to 38 per cent.
NAB’s personal banking group executive, Rachel Slade, said while most of the bank’s customers were in a good financial position, there were some pockets of concern.
“Seventy per cent of NAB customers are ahead on their home loan payments but we do know there are some people who are feeling the pressure of an increased cost of living,” she said.
Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletter here.
When board directors spend bucketloads of their own money buying more ASX shares in the companies they run, it’s a pretty clear sign of confidence.
To reiterate, we’re not talking about the exercising of options or rights issues. Nor director’s remuneration (where the issuing of new shares forms part of a director’s salary package). We’re talking about on-market trades using personal cash savings, super funds, or monies held within companies they own or control.
Who’s been buying shares in the ASX companies they run?
Listed companies are required to publicly advise the ASX when a director has purchased shares.
In a statement this week, Straker Translations Ltd (ASX: STG) told the ASX that director Steve Donovan had acquired 40,000 shares in an on-market trade worth more than $1.7 million on 3 August.
On Friday, the Straker share price closed at $1.13, up 7.1% for the day and down 29.4% year to date.
Eagers Automotive Ltd (ASX: APE) director Nicholas Politis AM has also made a series of share purchases through his companies, WFM Motors Pty Ltd and NGP Investments (No 2) Pty Ltd.
Politis has been buying more ASX shares in Eagers for several weeks. In July, I spent $1.5 million buying Eagers shares. By the end of the month, I have held more than 70.33 million shares.
He’s bought another 100,000 Eagers shares in August, the latest being a 10,000 parcel bought on Thursday.
On Friday, Eagers closed at $13.10, making his stake in the ASX 200 company worth about $922 million.
Eagers has a market capitalization of $3.47 billion with approximately 257 million shares on issue.
The Eagers share price dipped 3.1% on Friday and is down 6.1% year to date.
Also this week, United Malt Group Ltd (ASX:UMG) told the ASX that three directors had bought shares.
Independent chair and non-executive director Graham Bradley AM purchased 75,000 shares on the ASX between 3 and 8 August. The average price was $3.04 per share for a total consideration of $227,994. He now directly owns 196,395 shares in the company.
United Malt CEO and managing director Mark Palmquist purchased 50,000 shares on 4 August at an average price of $2.95 per share for a total consideration of $147,625. He now directly owns 543,222 shares in the company.
Independent non-executive director Gary Mize purchased 17,317 shares on 4 August at an average price of $2.85 per share for a total consideration of $49,353. He now owns 48,200 shares in the company.
The United Malt share price closed Friday’s session at $3.29, up 1.9%. It’s down 27.2% year to date.
We’ve all been hearing a lot about inflation but it’s shrinkflation that shoppers really need to worry about.
Shrinkflation is where manufacturers charge the same or even more for smaller servings, betting on most consumers not noticing the difference.
And with rate rises and cost-of-living pressures hitting many hard households, these reductions are offering less and less value for money
Consumer group Choice has been getting tip-offs from peeved Aussies about products that have been downsizing, recently verifying Smith’s crinkle cut potato chips had been trimmed by 5g — or about three chips — to 170g per pack.
Shrinkflation is where manufacturers charge the same or even more for smaller servings, betting on most consumers not noticing the difference. Credit: The West Australian
There has also been a 20g drop in large packs of Red Rock Deli potato chips to 165g and boxes of Crunchy Nut Corn Flakes have shed 30g.
And sweet-toothed shoppers have been left with a sour taste with Cadbury family-sized chocolate blocks going from the once-standard 250g to 180g.
The latest to drop weight is Maltesers, with a spokeswoman for manufacturer Mars Wrigley saying it was “facing unprecedented cost pressures” like many Australian businesses.
“From time to time, external factors make it necessary for product changes so that we can continue to ensure the availability of our products to all Australians,” she said.
Choice spokesman Liam Kennedy said shrinkflation was a global trend that was expected to continue.
“Most of the examples that we see, a lot of the tips we receive, are in that snack area, cereals,” Mr Kennedy told The West Australian.
But it has hit pet food too, with bags of Purina One cat food contracting by 100g to 1.4kg but costing more.
Choice says ‘shrinkflation’ is a global trend expected to continue. Credit: Rebecca Le May/The West Australian
Owner Nestle blamed that on recipe changes and higher costs for raw materials, packaging and transport, Mr Kennedy said.
“A lot of business are feeling that right now,” he added.
Elizabeth Jackson, a food supply chain systems expert at Curtin University, warned shoppers to expect ongoing pain at the checkout, mainly due to high transport costs, saying the current inflation spike was reminiscent of that seen in the oil crisis of 1973.
The latest Australian Bureau of Statistics inflation data showed transport cost jumped the most of 11 expense categories in the year to June, up 13.1 per cent.
“The products that have been escalating so greatly have been those we can’t do without, your staples — fresh fruit and vegetables, meat, cooking oil, pasta,” Dr Jackson said. “We can’t get away from it.
“But why people are feeling it so much is we’ve actually been experiencing unnaturally low prices.
“In 2011, food inflation got as low as -3.2 per cent, so we’ve been enjoying things too much and we’re just getting back to reality now, and we don’t like it.”
‘Shrinkflation’ has been spotted mainly in snack foods but also in pet food. Credit: Danella Bevis/Danella Bevis
Those previously unusually low prices were caused by retailers engaging in price wars, squeezing the margins of primary producers, she said.
But now, on top of costs including fertilizer and fuel soaring, the freight transport sector was battling labor problems, faced with an aging truck driver workforce and a struggle to attract young workers.
“What we’re experiencing now, we need to get used to. This is business as usual for the foreseeable future,” Dr Jackson said.
Choice’s latest Consumer Pulse survey, which polled 1083 Australian households, found 23 per cent were struggling to get by, up from 18 per cent in June last year.
Laundry can be a chore, especially when it comes to bath towels. While it is important to wash them at high temperatures and not mix them with other fabrics, with energy bills on the rise, this may not be possible for some people. According to one expert, Britons should avoid using bleach and fabric softeners.
Jessica Hanley, founder of Piglet in Bed, said: “Wash your new towels before you use them.
“Nearly all new towels are coated with softeners that are often used during the finishing process, which provides that extra-fluffy look that you see at the store.
“The coating can restrict the absorbency of your towels, so it’s best practice to wash them before your first use.”
According to the expert, this can affect the color and quality of the towels.
READ MORE: Five kitchen items you ‘need’ to give your space the ‘wow factor’
“Washing towels with clothes can transfer a lot of bacteria between each item in the washing cycle.
“Putting towels in their own load allows towels to dry easier, as damp towels typically dry slower than clothes.
“Make sure you shake any excess water from your towels before placing them in the dryer, as this will help fluff the material and keep them absorbent.
“Avoid leaving wet towels to sit in the washer for a long period of time, as this can result in an unpleasant musty smell.”
Drying towels on a high heat can damage the cotton fibers.
Opting to dry towels outside can make them crisper, which some people may like.
If choosing to dry towels in a tumble dryer, especially in the winter months, the expert recommended drying at 40 degrees.
Jessica said: “This will help achieve your desired softness, eliminating bacteria in the process.
“In the summer months, take advantage of the sun to let your towels air dry – the ultimate all-natural dryer that helps maintain the integrity of the fabric, and keeps your towels soft and fresh.”
When it comes to storing towels, the expert recommended folding them to achieve a square shape.
Salt Bae’s restaurant in London has reported an impressive £7 million ($8.55m) in sales in its first four months of trading despite receiving poor reviews and criticism over its prices.
All it took was one customer purchasing one of the restaurant’s gold leaf-covered steaks and a bottle of wine.
Okay, admittedly it took a little bit more than that, but the infamously high prices at the restaurant will no doubt have gone a long way in helping the Nusr-Et Steakhouse in Knightsbridge earn into the millions within its first few months.
The restaurant, owned by viral sensation Salt Bae (Nusret Gökçe), opened its doors in September 2021 before revealing its takings in a financial report filed to the UK’s Companies House.
The report revealed that the company brought in £7m in its first four months of trading, with an overall profit of £2.3m ($2.79m) in the year to December.
Nusret UK Limited, which owns the restaurant and is controlled by the Turkish conglomerate Doğuş Group, said the Knightsbridge location had ‘performed higher than the expected results’ in spite of the impacts of coronavirus on the hospitality industry.
The high earnings also come in spite of the mixed reviews the restaurant has received, with its rating on Google coming in at just 2.9 stars and a TripAdvisor rating placing it among the worst places to eat in London.
Reviews from customers have been varied, with some praising the food, atmosphere and overall experience while others just can’t get over the prices, which according to receipts shared by customers include £18 asparagus, £11 Red Bulls and a staggering £850 steak .
Are you kidding me 😳 This is the receipt from salt bae’s London restaurant. Nusr-ET in Knightsbridge, 4 Red Bulls are £44.00 and 2 cokes are £18.00 The total bill came to £1,812.40 And this place is a steakhouse 👇 But not to worry you get a complimentary, Turkish Tea 🍵😳 pic.twitter.com/ev1HE7nR2Y
One review from a not-so-impressed customer reads: “Bang average for what it’s supposed to be….I went with the intention of hoping I’d have at least a half decent experience. But slow service, average food, with the ridiculous price they charge for what they’re giving… in short, if you can avoid going, definitely do so.”
Another says: “Not even mentioning the money I knew where I was going but service and food are not worth it. Getting food before drinks, stake [sic] was very good but had better in GAUCHO for half the price and with better wine selection. Don’t get the fuss around this… maybe superficial reasons for the rich to feel rich. my macdonald’s [sic] after was great tho.”
Though the restaurant obviously isn’t for everyone, it’s at least received enough praise to edge it towards a three-star rating on Google, and there are a number of five-star ratings from customers who were blown away by their experiences. Plus, the report of his earnings indicates it’s not doing too badly either way, so for once Salt Bae will probably have no issue ignoring the saltiness.
All this is why the latest leap in inflation has led some economists to worry that, if expectations become “unanchored”, inflation may become entrenched at a much higher level.
This fear explains why many are anxious to use higher interest rates to get actual inflation back down ASAP. If falling real wages help to speed the process, so much the better.
Two small problems with this. For a start, there’s little evidence – either here or in the other rich economies – that expectations have moved up. Sensibly, everyone expects that, before too long, the inflation rate will go back to being a lot lower.
Our modern oligopolised economy gives many big businesses a lot of power over the prices they’re able to charge.
In the real world of price-setting by firms and workers, it takes a lot longer for expectations to shift prices than it does for prices in share and other financial markets to bounce around.
But the deeper reason worries about worsening expectations are misplaced is that, since this theory became so influential in the ’70s, the mechanism by which the expected inflation rate becomes the actual rate has broken down.
Businesses retain the ability to raise their prices when they decide to – and to discount those prices should they discover they’ve pushed it too far and are losing sales – but organized workers have largely lost their ability to force employers to grant higher pay rises.
If you doubt that, ask yourself why the number of days lost to strikes is now the tiniest fraction of what it was in the ’70s. We’ve seen a little strike action lately, but it’s coming almost wholly from workers in the public sector – the main part of the workforce that’s still heavily unionized.
But the breakdown of the inflation-expectations theory and the “wage-price spiral” as explanations of the relatively modern phenomenon of inflation – a continuing rise in the general level of prices – leaves us looking elsewhere for explanations.
A big part of it is the message those economists who specialize in studying competition have to give financial economists such as Lowe: you don’t seem to realize that our modern oligopolised economy gives many big businesses a lot of power over the prices they’re able to charge.
Oligopoly is about the few huge firms dominating a particular market reaching a tacit agreement to keep prices high and stable, and limit their competition for market-share to non-price areas such as product differentiation and marketing.
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As former competition czar Rod Sims has pointed out, this greatly reduces the ability of higher interest rates to influence prices in many big slabs of the economy.
But if many big businesses can improve their profitability by deciding to raise their prices, why did they wait until only a year ago to decide to start whacking them up? Because it ain’t that simple.
All firms would like to raise their prices all the time. What stops them is the knowledge that they can’t charge more than “what the market will bear”. They worry about two things: what will my competitors do? And what will my customers do?
When there’s a big rise in input costs, the knowledge that all my competitors are facing the same cost increase gives me confidence we’ll all be passing it through to the customer at the same time.
That’s why it was the sudden, large and widespread increase in the cost of imported inputs caused by the pandemic and the Ukraine war that started the latest bout of prices rises at the retail level.
RBA Governor Philip Lowe’s says “inflation psychology” is just as important as “inflation expectations”.Credit: Bloomberg
But, as Lowe keeps saying, the supply chain cost increases don’t explain there the rises in retail prices. He makes the obvious point that firms find it easier to raise their prices at a time when demand is strong and people are spending. His interest-rate rises are intended to stop demand being so strong and conducive to price rises.
But the less obvious point – especially to people mesmerized by the neoclassical way of thinking – is the role of psychology. I’ve got a great justification for increasing my prices, but no one’s counting. If my costs have risen by 5 per cent, but I increase my prices by 6 per cent, who’s to know?
Sims reminds us that this is just the way firms with pricing power behave. They raise their prices and profits in ways that aren’t easy for their customers to notice.
That covers big business. In the main, small businesses don’t have much pricing power. But “what the market will bear” is greater when the average has spent months softening up their customers with incessant talk about inflation and how high prices will go.
Lowe can’t say it, but it’s not uncooperative workers that are his problem, it’s businesses using the chance to slip in a little extra for themselves.
Ross Gittins is the economics editor.
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Laundry can be a chore, especially when it comes to bath towels. While it is important to wash them at high temperatures and not mix them with other fabrics, with energy bills on the rise, this may not be possible for some people. According to one expert, Britons should avoid using bleach and fabric softeners.
Jessica Hanley, founder of Piglet in Bed, said: “Wash your new towels before you use them.
“Nearly all new towels are coated with softeners that are often used during the finishing process, which provides that extra-fluffy look that you see at the store.
“The coating can restrict the absorbency of your towels, so it’s best practice to wash them before your first use.”
According to the expert, this can affect the color and quality of the towels.
READ MORE: Five kitchen items you ‘need’ to give your space the ‘wow factor’
“Washing towels with clothes can transfer a lot of bacteria between each item in the washing cycle.
“Putting towels in their own load allows towels to dry easier, as damp towels typically dry slower than clothes.
“Make sure you shake any excess water from your towels before placing them in the dryer, as this will help fluff the material and keep them absorbent.
“Avoid leaving wet towels to sit in the washer for a long period of time, as this can result in an unpleasant musty smell.”
Drying towels on a high heat can damage the cotton fibers.
Opting to dry towels outside can make them crisper, which some people may like.
If choosing to dry towels in a tumble dryer, especially in the winter months, the expert recommended drying at 40 degrees.
Jessica said: “This will help achieve your desired softness, eliminating bacteria in the process.
“In the summer months, take advantage of the sun to let your towels air dry – the ultimate all-natural dryer that helps maintain the integrity of the fabric, and keeps your towels soft and fresh.”
When it comes to storing towels, the expert recommended folding them to achieve a square shape.
Last week the Reserve Bank of Australia announced a year-long research project with the Digital Finance Cooperative Research Center to explore “use cases” for a central bank digital currency (CBDC). Here is what’s going on.
What is a CBDC and how is it different from cryptocurrency?
Banknotes are a physical form of money we exchange for goods and services. And we’re increasingly making digital transactions, whether tapping credit cards or smartphones. ATM use is down about a third in three years, the RBA says.
Now, the RBA and counterparts around the world are studying new digital forms of money that central banks themselves might issue. Research will examine uses of CBDC for commercial banks – the wholesale market – and a retail version the public may one day use.
Cryptocurrencies, by contrast, are decentralized, unlike “fiat currencies” produced and regulated by governments. Bitcoin and ethereum are among prominent digital currencies relying on cryptography to secure transactions.
To curb price volatility of cryptos, stablecoins have been created to mimic “fiat currencies” by anchoring value to assets such as the US dollar. The failure of TerraUSD and other stablecoins reflects the sector’s infancy. CBDCs might fill the gap.
“A fully realized central bank digital currency has the promise to bring the regulatory certainty and power of digital assets to a place that’s coupled with the trust and faith that we have in money that’s issued by the Reserve Bank today,” said Michael Bacina, a partner at Piper Alderman and a fintech specialist.
Why is the RBA getting involved?
Partly exploratory. “I don’t think it’s inevitable” that the bank will issue CBDCs, says the RBA deputy governor, Michele Bullock.
“In terms of day-to-day payments that touch you and [me] and our friends and family, it’s not clear to us what the case for it is,” she says. “We have banknotes. We have lots and lots of digital money alternatives [including] fast payment now.
“I think we just need to keep our toes in it, and not be at the bleeding forefront.”
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The focus will be less on the technology itself but rather settling on design principles of how decentralized such currencies might be, while maintaining standards of protecting privacy that the public can accept.
“Do you put limits on the amount of money people can have in this? Does the central bank issue it directly, or [as] we do with banknotes issue CBDCs via existing banks,” Bullock says. “I don’t think anyone’s come to a complete consensus.”
Is there an appetite?
If an Australian Securities and Investments Commission report on investor behavior released on Thursday is any guide, the market for digital currencies is growing rapidly.
Its survey of 1,053 investors found that cryptocurrencies were second only to Australian shares in terms of most common asset held, at 73% and 44%.
In terms of the value of the holdings, cryptos were also on a par with residential investment properties.
An ASIC survey of 1053 retail investors found their holdings of cryptocurrencies were on a par with resident housing investments, with only their holdings of Australian shares larger. pic.twitter.com/uF7e4iJtgk
Andreas Furche, the chief executive of the Digital Finance Cooperative Research Centre, notes the RBA’s ongoing caution.
“It’s not something that’s a done deal,” Furche says. “It’s not clear yet whether from the RBA perspective this is going to fit or be useful or not.”
The trial will be “ring-fenced” with only registered parties taking part. It will, though, be open in another sense: “We don’t have a preconceived outcome.
“Those of us who build or discuss or provide infrastructure aren’t necessarily the innovators that build new kinds of market infrastructure, business models or whatever on that infrastructure,” Furche says. “If we just make that assessment based on what we can think of ourselves, we’re not going to get anywhere.”
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He says the rise of stablecoins indicates there’s an opportunity to meet people’s interest in digital currencies without the exposure to as much volatility.
“Despite the name, [stablecoins] are often still fraught with risk because they’re not necessarily backed 100%,” he says. CBDCs, based on a national currency, are an “ultimate stablecoin”.
What do market participants say?
Chloe White, an independent consultant and formerly Treasury’s representative on the Council of Financial Regulators examining cryptos, says blockchain and the ecosystems that are building around it will continue to function and grow whether governments issue CBDCs or not.
“What we see happening in cryptocurrency markets at the moment very much mirrors what we see in the traditional system,” White says. “You have a so-called real economy where people are transacting goods … and then you have a financial layer wrapped around” with derivatives, insurance and so on.
There may even be national security reasons for having CBDCs and not missing out on emerging technologies and new ways of doing business.
“China, in particular, seems quite determined to want to leverage this technology in some way,” she says. “And there’s barely a corner of the world that you can point at that has influence and economic power that’s not looking at these issues in some way.”
Bacina says the fintech world is evolving faster than the internet at its genesis. “It’s the same as we could not predict Netflix and we could not predict Amazon’s next-day delivery when the internet was being invented and rolled out.
“There are no wires to be put down, and that physical infrastructure to be connected – it’s already there.
“We’re talking about the ability to automate things like bank guarantees, and other slow, manual processes which currently drive up compliance costs.”
As for who might benefit from the RBA and Digital Finance Cooperative Research Center study, Bacina says participants may learn as much as the institutions.
“It’s a six- or seven-way street,” he says. Interest will focus on “deep analysis of systems contracts, regulatory interfaces – that kind of analysis doesn’t occur very often”.
Why it’s not bananas to put your eggs in the freezer: Experts say it can help families save money
Apples will last up to 77 days longer if they are put in the fridge instead of bowl
Mushrooms should be refrigerated, but they should first be placed in paper bag
Cucumbers last longer put in a cupboard or placed in a bowl on a countertop
By Natasha Livingstone For The Mail On Sunday
Published: | Updated:
Keeping apples in the fridge and eggs in the freezer might sound bananas, but experts say it can help families save money during the cost-of-living crisis.
With grocery prices rising a record 10 per cent compared with last year and supermarket staples doubling in price, many shoppers are searching for ways to keep costs down.
And experts at consumer champions Which? say families can save money and reduce waste simply by storing their food correctly.
Their tips include putting eggs in the freezer, but only after cracking and beating them before storing them in a container. Bread should also go in the freezer.
With grocery prices rising a record 10 per cent compared with last year and supermarket staples doubling in price, many shoppers are searching for ways to keep costs down
Apples will last up to 77 days longer if they are stored in the fridge. Mushrooms should also be refrigerated, but they should first be placed in a paper bag.
Cucumbers last longer if they are stored in a cupboard or placed in a bowl on a countertop.
Stoned fruits such as peaches, plums and cherries ripen better outside of the fridge, allowing the flavors to fully develop.
Overly ripe fruit that shows no sign of mold can still be used as a topping for porridge or in a crumble.
Once opened, peanut butter is fine to store in a cupboard as long as it’s tightly sealed.
Which? money expert Reena Sewraz said: ‘This crisis is putting a lot of families under pressure but many people aren’t aware that simply storing your food differently can vastly extend its shelf life, saving you money.’
Make your money work harder – and offset your energy bills: Page 47
Drivers are bracing for the looming end to the fuel excise cut next month as new figures show Bunbury is the nation’s most expensive regional center for petroleum, with the average household shelling out an eye-watering $122.70 each week.
According to the Australian Automobile Association’s latest Transport Affordability Index covering the June quarter, that’s $20 per week higher than the national regional average and amounts to $6,381 per year.
Bunbury took out the unenviable gong because research showed its residents tended to drive longer distances than people in other regional centers, the association said.
Perth motorists are far better off for fuel costs despite getting fleeced at the bowser, ranking the second cheapest capital city behind Adelaide, with the average household now forking out $95.71 per week or almost $4977 per year.
How many WA families are paying for fuel. Credit: The West Australian
Hobart is the nation’s most expensive capital city with fuel costing residents $102.63 per week on average.
This is followed by Darwin ($99.84), Sydney ($99.13), Canberra ($98.92), Brisbane ($98.15) and Melbourne ($97.29).
Scarborough woman Taylor Donovan, 30, says a full tank of fuel for her Kia Sportage is costing her on average $130 a week.
Before recent fuel price surges, it cost her about $65 a week, and Mr Donovan says it’s now “ridiculous”.
Taylor Jade Donovan says current prices are “ridiculous”. Credit: daniel wilkins/The West Australian
“Are we not paying enough? Expensive fuel on top of car registration, insurance, licensing … it’s just full on,” she told The Sunday Times.
“It needs to be paid. It’s affecting me, everyone.
“I feel for the families.
“If I had kids, I’d become best friends with the mums and carpool to and from school and sports.”
Bunbury resident Claudia Stiglmayer, 23, said she is spending at least an average of $80 to $100 on fuel every week and is fed up with the “disruptive” changes to her budget.
“It gives you whiplash, honestly. Prices will be quite high then they’ll go low again,” she said.
“People get comfortable and complacent and then it will spike.
“It interferes with my budget and I can’t get into a solid routine financially…it’s very disruptive.”
Nationally, the average weekly fuel cost jumped to $100.39 – the first time it has passed $100 since the index’s inception in 2016.
“Despite the temporary excise cut, fuel prices are rising and continue to be a significant contributor to cost of living pressures across both regional and metropolitan Australia,” managing director Michael Bradley said.
The excise cut finishes at the end of next month.
Drivers are bracing for the looming end to the fuel excise cut next month as new figures show Bunbury is the nation’s most expensive regional center for petroleum, with the average household shelling out an eye-watering $122.70 each week.
Credit: Kelsey Reid/The West Australian
The index also showed that total transport costs – covering everything from car loan repayments to servicing, tires and public transport – for the average Perth household was just over $380 per week or $19,782 annually.
That compares to the national capital city average of just over $412 per week or $21,435 annually.
Bunbury stood out again, with total transport costs of almost $363 per week or $18,868 annually compared to a regional average of nearly $343 per week or $17,835 annually.
Sydney is still Australia’s most expensive capital city for transport costs averaging $486.18 per week, followed by Melbourne at $461.01 per week and Brisbane at $454.52 per week.
RAC general manager of external relations Will Golsby noted the change in Perth’s fuel price cycle from weekly to fortnightly in October was making it harder for motorists to save money by filling up on the cheapest days.
Since late June, Coles Express has reverted to a weekly cycle, with Viva Energy, which sets the prices at the outlets, telling FuelWatch it was in response to a period of extreme price volatility and to provide more competitive options for drivers.
While BP and 7-Eleven then followed, it’s too early to call if this is a permanent shift, FuelWatch manager Ben Derecki says.
If unleaded petrol is too expensive, Ms Donovan now won’t fill up a full tank.
“I’ll wait for later in the week when it might be cheaper – I’ve never had to do that before.”
