The retail industry is suffering as a result of the low interest rates, according to retail analysts.
The Australian dollar has been trading below 70 cents since early March and many retailers are not expecting any new supply from overseas, and that will make things more expensive for the consumer, according the National Retail Federation.
Rene McLean is a senior economist at the Australian Bureau of Statistics and said the low price of copper was also affecting the consumer price index (CPI).
“The inflation rate is lower than what we would expect in a world where the CPI is about to be raised to around 1.5 per cent,” Mr McLean said.
“That is a huge blow to retail, because it means that the cost of living in the region has increased by about 5 per cent in the last year.”
But the CPI has not been the only factor impacting prices.
“There is an increase in consumer prices in the outer metropolitan areas,” Mr McKee said.
The Federal Government announced a new $15-per-week minimum wage last month.
It also announced a $15 childcare payment in the March budget and a $2,500 rebate on petrol and diesel.
“The economy is doing very well and so is consumer spending,” Mr McKenzie said.
Mr McLean says the Government has done well by raising the minimum wage and is hoping for the same success in the mining industry.
“We are hoping for more modest increases in the minimum wages and other things,” he said.