Charles Sturt University economics professor John Hicks said renters could be hard hit by RBA rate rises

The RBA increased the cash rate by 50 basis points to 1.85 per cent, the fourth rate rise this year.

With the Consumer Price Index also up 1.8 per cent for the June quarter, Charles Sturt University economics professor John Hicks said pressure will mount on people's finances.

Professor Hicks said the rate rise is an attempt by the RBA to "stifle demand" in an economy where demand is outstripping the supply of goods.

"Supply has been reduced because of things like the war in Europe and the floods in Australia that have cut back on the ability to produce," he said.

"That means we've got too much money chasing too few goods."

The rate rises will hopefully reduce demand, thereby restraining the increase in prices in the long-term.

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But in the short-term the outlook does not look good, especially for renters.

"Renters are likely to see quite a bit of pressure coming their way in terms of rents going up," he said.

"As house prices fall, people who own houses are going to be taking them off the market for sale and they will try and rent them for higher [sums]."

Adding to increased rental pressure, petrol and energy are set to remain high because of factors outside our control, such as the Russian invasion of Ukraine.

Farmers are also facing increased costs, meaning food prices will remain expensive.

"As farmers see the price of diesel go up to run their tractors they are going to look for a higher return for their produce," Professor Hicks said.

Tash Rollings and her daughter Molly Lennon say they are increasingly feeling the pinch of living costs.

Their fridge isn't as full as before and they are much stricter with the grocery budget, they said.

They also aren't going out for dinner with girlfriends as frequently, or socialising in general.

Ms Lennon said people aren't "enjoying life as much" due to money pressures.

"It's less enjoyable, you're just out here trying to survive," she said.

Ms Rollings said paying bills is a juggle at present.

"I've had to get bill extensions a lot, that's probably what hurts me the most," she said.

"Having to get an extra week on your gas or electricity, or going on a payment plan, even just for that one week, just to get by."

The rate rise will impact on borrowing, Professor Hicks said, such as home loans and business investment.

As it becomes more expensive for businesses to purchase goods, prices will rise for consumers.

It could also see unemployment rise as businesses are dissuaded from expanding.

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