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Today's inflation numbers show the economy is still running hot and that's fuelling the case for another interest rate hike in the coming months. Households are now facing the prospect of higher mortgage repayments on top of everyday costs that keep rising faster than expected.

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00:05The relentless pinch to the hip pocket nerve.
00:09Nearly $5 for a bottle of water in the fridge.
00:13Seems like a bit much.
00:14Definitely fruit and vegetables, yeah, without a doubt, and meat.
00:19Australians are feeling price pressures across the economy.
00:22Inflation remained steady at 3.8% in the year to January, but the measure the Reserve Bank
00:28looks at went up.
00:29Electricity bills surged 32% as government subsidies were wound back.
00:34Rents also rose and the cost of building new homes accelerated.
00:39And food and non-alcoholic drinks prices also increased, helping the nation's biggest
00:44supermarket produce a bumper profit.
00:47The Woolies boss admits some prices have gone up.
00:51Of course there are examples where commodities will increase, so meat pricing is an example
00:57of that right now where meat and land pricing has increased.
01:01Inflation remains a thorn in the government's side.
01:04I take seriously my responsibilities in the fight against inflation.
01:07We have made good progress on the budget, but we know that there's more work to do,
01:12and that's the government's focus.
01:13Under this government, the Albanese government, we have persistent inflation, fuelled by debt.
01:20The Reserve Bank says it wants inflation at 2.5%, in the middle of its target band.
01:25These latest figures are well above that.
01:27For home borrowers, it's a double whammy, now facing rising prices and the prospect of
01:32another interest rate hike as early as next month.
01:35ANZ Research still expects that we're one and done for rate hikes, although today's data
01:39does raise the risk a little that we will see further rate hikes necessary.
01:44Another potential pressure point for already tight budgets.
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