For the first time in more than 13 years, the cost of living for every Australian household has risen faster than inflation.
The June 2024 quarter figures from the Australia Bureau of Statistics (ABS) showed all household types recorded an increase in living costs.
ABS Head of Prices Statistics Michelle Marquardt said increased living costs ranged from 1.2 percent to 1.4 percent, compared to a rise of 1.0 percent in the Consumer Price Index.
“This is the first time since December 2010 that increases in living costs for all household types were higher than the increase in the CPI,” Ms Marquardt said.
She said insurance and financial services, which included mortgage interest charges, and food and non-alcoholic beverages were the main contributors across all household types.
“Housing also contributed to higher living costs for all household types, except self-funded retirees.”
Ms Marquardt said higher premiums for motor vehicle, house and home contents insurance, and higher fruit and vegetable prices, impacted living costs for all household types.
“Other government transfer recipient households were most impacted by higher rental prices reflecting a tight rental market.”
She said a significant difference between the Living Cost Indexes and the CPI was that the Living Cost Indexes included mortgage interest charges.
Ms Marquardt said employee households were most impacted by rising mortgage interest charges over the quarter, which are a larger part of their spending than for other household types.
“Mortgage interest charges rose 2.6 percent in the June 2024 quarter driven by the continued rollover of some expired fixed rate mortgages to higher variable rate mortgages.”
