Butchers on Macquarie's Geoff Mulholland says he has noticed more people living 'week to week'

Any thoughts of assistance towards cost of living for mortgage holders was also dashed on Tuesday when the Reserve Bank lifted its cash rate target by 50 basis points to 2.35 per cent, forcing many residents to assess their income once again.

With food on the 'need' list, local butcher Geoff Mulholland said he has noticed more and more people living week to week.

"The price of meats has levelled out over the past months but people are just watching their pennies, they're just not spending what they were 12 months ago so the cost of living is affecting what they're buying," Mr Mulholland from Butchers on Macquarie said.

"They're going for the cheaper cuts, especially the larger families are not buying as much. They're just living week to week."

He said he expects the trend to continue right through until at least Christmas, with the elderly especially buying just enough to get them through the week.

While Mr Mulholland only took over the shop four months ago, he said already he has seen a difference in foot traffic.

"We're selling the same items but probably not as much. They're watching their pennies, They're living on the border some of them are struggling.

"Some people even ask for free meat, lot of people are hurting out there, I help when I can, I do understand, but we have to pay our bills too. It's not that easy, it's just the way it is at the moment. It's pretty tough for a lot of people."

Mr Mullholland said while they had haven't dropped back, they haven't gained anything in the past four months.

"We'd like to build it up a bit as everyone else would. It's just economy and business, It's flatlining at the moment. We got a lot of vacant shops on the main street, that's a good indication that some people are hurting."

"It's funny times, hopefully it gets better next year, but this year's going to be tough."

"We're trying to watch our pennies like everyone else, trying to give value for money. If we get something a little bit cheaper off the wholesalers, we'll pass it on [to the customers]. I don't believe in profiting to excess but we do have bills to pay and electricity bills and staff to pay like everyone else," he said.

Midwest Foods and Liquor Market marketing and retail manager Jo Suckling said they were also seeing residents changing their spending habits.

"We've recently seen an uptake in frozen fruits and vegetables, our bulk lines such as sugar, flour, rice, pasta, and wholesale cuts of fresh meat which is a massive saving for our shoppers.

Ms Suckling said a number of factors were in play when it came to Australia's food supply chain.

"Many of our suppliers continue to struggle through staff shortages, logistics issues, rising fuel costs, and cost increases associated with raw materials (due to floods, etc)," she said.

"We are continuously looking for grocery bargains where we can pass on the savings to our customers."

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