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

Economists forecast the December quarter consumer price index will reveal an annual increase of about 7.5%. Photograph: Jenny Evans/Getty Images

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.”