Australia’s cost of living crisis has hit home for one Melbourne influencer who was forced to spend double what she’d normally pay for a coffee this week.
Rozalia Russian, the glamorous wife of nightclub owner Nick Russian, was left gobsmacked when she paid $8 for her morning coffee on Tuesday.
The socialite addressed the soaring prices during an Instagram Q&A after a fan asked for her thoughts on the rising interest rates and inflation.
Insane prices: Australia’s cost of living crisis has hit home for Melbourne influencer Rozalia Russian, who was forced to spend double what she’d normally pay for a coffee this week
‘My fave is when I pay $8 for a punnet of strawberries and the kids take one bite of each strawberry and chuck out the rest,’ she sarcastically replied.
‘My $8 coffee this morning was fab though,’ she added.
Rozalia’s post was accompanied by a photo of her Nike Air Jordans, which are worth about $475.
‘My $8 coffee this morning was fab’: The socialite addressed the soaring prices during an Instagram Q&A after a fan asked for her thoughts on the rising interest rates and inflation
Sacrifice: Rozalia, who likes to show off her expensive designer wardrobe on Instagram, may need to cut back on the spending to keep up with the rising cost of living
Rozalia, like many Australians, is feeling the pinch due to the rising cost of living.
The central bank on Tuesday hiked the cash rate to 0.85 per cent, meaning mortgage holders will be forced to shell out even more on monthly repayments.
It is the second time the Reserve Bank has increased the cash rate in 11 years – the first was in May when it moved past the record low setting of 0.1 per cent to curb spiralling inflation.
Struggles: Rozalia, like many Australians, is feeling the pinch due to the rising cost of living
The rate increase will add $133 a month on a loan worth $500,000 over 25 years, and $265 a month on a loan worth $1million.
Treasurer Jim Chalmers acknowledged ‘we have an incredibly difficult challenge ahead’.
‘High and rising inflation, rising interest rates, falling real wages at a time when our ability to respond to these challenges is constrained by the fact that the budget is absolutely heaving with Liberal debt,’ he said, taking a swipe at Scott Morrison’s government.
‘We need to be honest and up front with the Australian people about the nature, the severity, the magnitude of this inflation challenge that we confront.’
He added that economists, government advisors and the RBA all predict inflation ‘will get harder before it gets easier’.
How much you could be paying on your loan in 2023?
How much extra you could be paying by Christmas?
$500,000: Monthly repayments will rise by $442
$600,000: Monthly repayments will rise by $532
$750,000: Monthly repayments will rise by $665
$1,000,000: Monthly repayments will rise by $885
Data is based the Reserve Bank of Australia raising the cash rate to 1.75 per cent by the end of 2022, inline with expectations.
How much extra you could be paying by the end of 2023?
$500,000: Monthly repayments will rise by $652
$600,000: Monthly repayments will rise by $782
$750,000: Monthly repayments will rise by $977
$1,000,000: Monthly repayments will rise by $1303
Data based on the Reserve Bank of Australia raising the cash rate to 2.50 per cent by the end of 2023, inline with expectations.
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