Tens of thousands of Greek Australians who will travel to Greece and Cyprus in the next couple of months are among those who are facing higher prices as the Australian dollar drops to a 33-month low.
The Australian dollar dipped to US92.4c yesterday, due in part to concerns about slowing growth in China and the US Federal Reserve indicating the ending of its stimulus program is near.
The dollar has fallen more than 12 per cent since its April peak of US$1.05.
It is anticipated that the falling dollar will affect more than 70,000 Greek Australians who are expected to visit Greece and Cyprus in the next couple of months.
Other than travellers, drivers, homeowners and online shoppers are also facing higher prices as the Australian dollar drops to the 33-month low.
Major retailers are expected to lift prices for imported goods to try to claw back some profits after a long cycle of heavy discounts and sales.
Market experts are tipping a 10 per cent rise in the cost of imported goods by the end of the year.
The drop in the currency’s value is tipped to push the price of petrol higher, reduce the chances of further interest rate cuts from the Reserve Bank and lessen the benefits for Australians travelling abroad and buying online.
Further falls in the currency are tipped over the coming months as growth slows sharply now the mining boom has ended.