Westpac's economic overview shows we are still weathering the storm.

With high levels of inflation and consumer prices rising by 7.2 percent, households are having to squeeze their spending.

Borrowing costs are at their highest level in more than a decade, while sales are now at the lowest since the Global Financial Crisis.

And the added heat of the cyclone is pushing even more pressure on the economy.

Westpac acting chief economist Michael Gordon joined Mike Hosking.

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