The Reserve Bank's decision to increase interest rates this week has caused Federal member for Page Kevin Hogan to come out swinging about the cost-of-living.

Mr Hogan said the rate rise comes on top of soaring grocery bills, higher power prices, rising insurance premiums and rents that continue to climb.

“The average mortgage holder is now paying more than $23,000 extra a year in interest compared to when Labor was elected,” Mr Hogan said.

“This didn’t happen by accident. Labor’s reckless spending has kept inflation higher for longer, leaving the Reserve Bank with no choice but to keep pushing rates up,” he said. “That assessment is backed by leading economists.”

AMP Chief Economist Shane Oliver has said: “The best thing that Australian governments can do to help bring down inflation would be to cut government spending back to more normal levels.”

IFM Investors’ Chief Economist Alex Joiner has warned that “the fiscal guard rails have come off.”

Mr Hogan said that in the current financial year alone, Labor has added around $50 billion in new spending decisions, almost the size of the entire national defence budget.

“When families in our communities tighten their belts, they expect the Government to do the same. Instead, Labor keeps spending, and locals keep paying through higher interest rates, lower real wages and rising tax bills,” he said.

Mr Hogan said the seriousness of the situation was underscored by the fact the rate rise decision was unanimous.

“The entire RBA Board has hit the brakes, while the Treasurer keeps his foot flat on the accelerator,” he said.

“This is Labor’s cost-of-living crisis,” Mr Hogan said. “When Labor spends, Australians pay.”