Australia’s softening inflation unlikely to spell an end to interest rate hikes

The worst of the current inflationary cycle may be behind us, but the pain is probably not over for many households

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When normally well-to-do shoppers of inner-west Sydney start trimming spending on fruit and vegetables, it’s a hint that households everywhere are feeling the pinch.

“Now people are really conserving what they are spending on,” said Yousef Lakda, owner of the Nature Spot greengrocer in Rozelle. “They walk in, they check your prices and they walk out and go and compare the prices … it wasn’t [like that] before.”

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