International and regional university students say they’re becoming increasingly stressed as Australia’s inflation rate is rising.

Earlier this week NAB chief economist Sally Auld said in her economic comment watch she expected the inflation rate to hit five per cent in a matter of weeks.

“The situation in the Middle East is fluid and market moves are large and have been rapid, we have lifted our forecasts for both headline and core inflation in the near-term,” Ms Auld said.

Australia’s current rate sits at 3.8 per cent, well above the Reserve Bank’s target of 2-3 percent.

University students who have moved to Perth to study say the current economic climate is forcing them to chose work over studies.

Huey McDowall, a third-year medical student from Dunsborough, says it is more difficult for him compared to domestic students, who are able to live at home.

“It is very hard to even be able to afford things as simple as groceries,” he says.

“When I heard the prediction I was just thinking that I need to work more as a result, put less time into uni, and I’m just going to struggle with the consequences if this dramatic rate rise happens.

“I’ve got to pay for rent up above $600 a week. I’ve got to somehow make time to work as well as full time study, to be able to afford these exorbitant prices for everything.”

For Mr McDowall, the most concerning part is the decrease in his grade point average due to the need to work.

He is calling for more targeted support for those moving to study.

“There are some support programmes, but I don’t think they account for the amount of time and effort that goes into getting a degree.

“The obvious one is subsidising the cost of moving out of regional areas, to come and live at places such as residential colleges, having subsidies in place would incentivise people to actually go and obtain degrees,” Mr McDowall says.

“Rather than excluding us from the picture of getting higher education.”

In the latest inflation figures from the Australian Bureau of Statistics, Perth led the country in percentage change of prices, with costs rising by nearly five per cent from December 2025 to January 2026.

The next highest was Brisbane with an increase of 4.3 per cent over the twelve month period.

International student Katherine Fahy describes Ms Auld’s prediction as “startling”.

She has now taken up a second job to be able to deal with the financial challenges.

Ms Fahy says she is making more conscious decisions about her finances.

“I’m being more cost effective when it comes to fuel, if I can walk somewhere I will try walk instead of driving, filling up on Tuesdays to get the cheapest prices.”

“Having to stick within budget, living within means. So less entertainment, less miscellaneous stuff, keeping spending minimal,” Ms Fahy says.

She would like to see greater support from governments, especially for those from overseas.

“Subsidising fees in some way would be fantastic, especially international students who are coming in, working difficult jobs.”

“We’ve obviously already got the National Rental Affordability Scheme, which covers some fees for residential colleges, but we’re still paying $25,000 a year to live here.”

Inflation is not the only issue on McDowall’s and Fahy’s minds, with the current housing market also weighing heavily on them.

The NAB housing monitor for March provided bad news for buyers, with dwelling prices in Perth increasing by 22 percent in the last 12 months.

Both students have already started to set aside funds for their first home.

“It’s pretty scary. Pretty shocking, honestly, the way it’s gone now,” Ms Fahy says.

The RBA is scheduled to meet next week with markets predicting a 30 per cent chance of a further interest rate hike, although the May meeting is a more probable chance of an increase to the official cash rate.