Australian consumers have received the RBA’s message loud and clear as spending collapses

Central banks around the world have taken a similar approach to managing inflation.

In Australia, the Reserve Bank recently raised the country’s cash rate 25-basis points to 4.10 per cent.

It is the highest rate in 11 years.

Australian retail giant David Jones also reported a slump in sales of up to 30 per cent.

Sarah Megginson from market research comparison company, Finder, said Australians are bearing the brunt of the increased rate hikes.

“We did some research at Finder and found that one in four Australians have actually taken on a second job or they’re working longer hours.

“Three per cent have even come out of retirement to earn money, and a further one in five people are considering taking on extra work,” she said.

It follows reports by banking giant, Westpac showing consumer sentiment took a serious hit following the rate hike announcement.

Inflation in the U.S. is slowly beginning to cool, though prices in Australia and much of the world remain stubbornly high.