RBA rate rise to 4.6% hits Australian households facing food insecurity
The Reserve Bank raised the cash rate to 4.6%, the highest since 2011, as housing stress and food insecurity surge.
The Reserve Bank lifted the cash rate to 4.6% this week, exacerbating a cost-of-living crisis that has left many Australian families struggling to meet essential expenses. Food insecurity has risen from 13.7% in 2020 to 17.9% in 2024, while housing stress surged and financial wellbeing fell for roughly one in four Australians.
A Hilda survey of over 17,000 Australians found that more people feel unable to get ahead despite working longer hours. Mental health researchers at the University of Melbourne say the pressure is now a public health issue: persistent hardship erodes people's sense of security and increases depression and anxiety.
Experts warn the situation has worsened since the Hilda data was collected, following successive rate rises and fuel price hikes. For some households, financial buffers have been exhausted and there is no visible path back to stability.
- 4.6%
- Cash rate
- 13.7% to 17.9% (2020-2024)
- Food insecurity rise
- Over 17,000 Australians
- Survey size
- 24.1% of females, 20.8% of males
- Wellbeing decline
Why it mattersRecord rate rises and living costs are leaving millions unable to afford basics like housing, food and utilities, with researchers warning of lasting mental health damage.
AustraliaFor Australian households already stretched, the rate rise compounds existing financial pressure and raises the stakes for anyone managing debt, rent or mortgage payments.
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