So interest rates have risen 75 basis points over the past five weeks, and there is more to come.
This means that Australian consumers will rein in their spending and bunker down in order to make higher mortgage repayments.
If life's excesses are trimmed, perhaps it's best to back ASX shares of companies that provide goods and services that Aussies just can't live without.
Wilsons investment advisor Peter Moran this week named two such examples to buy right now:
An ASX stock buy for the great outdoors
You may have seen the logo of ARB Corporation Limited (ASX: ARB) on other vehicles as you drive around Australia.
This is because ARB provides accessories and parts for a favourite Australian pastime — 4-wheel driving.
The company absolutely went gangbusters during the COVID-19 pandemic as Australians trapped in lockdown made their own adventures.
By November last year, ARB shares had quadrupled from its panic-selling low in March 2020.
Yes, it rose 300% over just 20 months.
But 2022 has been pretty ugly for the ASX stock. It has lost nearly half its value.
Moran still has faith, and believes it has been oversold.
"Underlying demand for parts remains strong, and the trend towards owning 4-wheel drive vehicles is likely to continue," he told The Bull.
"We expect supply constraints to ease over time, which should generate higher levels of sales growth. We hold an overweight rating."
Who wants a bucket tonight?
After enjoying the outdoor lifestyle, Australians also like to enjoy a greasy meal now and then.
This is where Moran's other buying tip, Collins Foods Ltd (ASX: CKF), comes in.
"Collins Foods owns more than 300 KFC outlets in Australia," he said.
"Collins is well-positioned for additional growth through its continuing rollout of Taco Bell outlets in Australia and via its KFC European operations."
The owner of Kentucky Fried Chicken, like ARB, thrived during the lockdown era as Australians bought takeaway in droves.
Its share price almost tripled from the March 2020 trough.
However, Collins shares have fallen almost 33% year-to-date, and KFC outlets are now having to replace lettuce with cabbage in their burgers due to high supply costs.
But Moran is not worried.
"Concerns about increasing input costs have flowed to a weaker share price," he said.
"Although costs will rise, investor concerns are too exaggerated, in our view. We hold an overweight rating."
