Big spending in the past year has come as no surprise to financial experts, but consumers are warned the trend needs slow to ease cost-of-living pressures.
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Latest data from the Australian Bureau of Statistics showed household spending was up 11.4 per cent in the 12 months to November 2022.
Industries which saw the highest rises in spending included transport, which was up 35.8 per cent, and hospitality - namely hotels, cafes and restaurants, which increased by 23.8 per cent.
Warrnambool's Ambleside Wealth Advisers principal James Kelly said he was not surprised to see increases in these areas, particularly when comparing the end of 2022 to the end of 2021.
"In November 2021, we were still in the grips of COVID and dealing with the fallout of lockdowns," he said.
"Now, 12 months later, we're going out more and doing more.
"Transport and cafes were being hammered 12 months ago so it's also not hard to have a big increase on those."
But Mr Kelly said he expected - and consumers needed to hope - spending would ease this year to limit future interest rate hikes from the Reserve Bank of Australia.
"We should all be praying it's going to come down," he said.
"Now that's a mixed message because ... that'll hurt businesses, but unfortunately they've got to be hurt.
"If we keep spending at the rate we are, the response from the Reserve Bank will be to continue lifting rates."
He said consumers - especially those who became homeowners during the pandemic - also needed to be wary of the "fixed-rate mortgage cliff", which will see many of these mortgage holders experience a separate rate increase from their fixed rates.
"They'll go from about a 2.5 per cent interest rate to a 5 to 6.5 per cent," he said.
"That's as good as the Reserve Bank lifting rates, it'll just automatically happen and there'll be a massive shock across the economy as people will have their repayments jump overnight.
"We are in for a bit of a rocky road."
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Mr Kelly said borrowers could soften the blow of this hike by getting ahead with their mortgage repayments - paying back more on a lower rate - if possible and reducing their discretionary spending including money on takeaway coffees and eating out.
"People should really think about what they need to spend their money on," he said.
"It's almost an expectation that we eat out every weekend ... that we buy five-dollar coffees.
"We need to watch those discretionary spends. A bit of sacrifice now will mean a lot further down the track."
Deakin University Business School senior lecturer Omar Bashar said he also expected consumers to be spending more of the money they likely saved during pandemic lockdowns.
While Mr Bashar said he anticipated this trend would continue well into the new year, he stressed persistent spending needed to ease to avoid more inflation growth.
"It is human nature to spend," he said.
"Now that everything is open, I think you'll probably see increased spending on hotels, tourism businesses and flights until the middle of the year.
"But the sooner people realise that inflation is not good for us ... and can actually reduce their spending, the better."
For Mr Bashar, interest rate hikes in 2023 were a near certainty which would force many consumers to tighten their budgets.
"I imagine there will be a couple more interest rate increases by the middle of this year," he said.
"There's also a lag effect. Increased spending will contribute to inflation and of course (higher) interest rates.
"That will help restrain spending."
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