Share and Follow
Households ‘are actually in a pretty good position’
“From a financial stability perspective, this all looks rather good.”
“The challenge for us now is really to continue to … make sure that we don’t let inflation expectations get ahead. They’re not at the moment, they’re remaining relatively well anchored. The challenge is to do that, at the same time as we don’t end up with a large increase in unemployment.
Inflation and the rising cost of living have been causing pain for Australians in 2023.
The below charts show the latest figures around living costs, household savings, and wages, along with rent and electricity prices.
Cost of living
Living costs for employee households rose 2 per cent in the September 2023 quarter, which was higher than the 1.5 per cent in the previous quarter, according to the Australian Bureau of Statistics (ABS).
The ABS notes a key difference between LCIs and the CPI is the inclusion of mortgage interest charges rather than the cost of building new dwellings.
According to the latest ABS data, the household saving ratio declined from 3.6 to 3.2 per cent in the June 2023 quarter.
This was the seventh consecutive fall and the lowest level since 2008.
Wages grew 1.3 per cent in September quarter and four per cent for the year, according to seasonally-adjusted data from the ABS, released earlier this month.
The annual WPI growth was the highest since the March 2009 quarter.
Rental affordability for Australians in every state as price hikes spread from the cities to the regions.
Melbourne and Perth also experienced a 10 per cent decline in affordability.
The monthly CPI rose 4.9 per cent over the 12 months to October, with the most significant prise rises being housing (6.1 per cent), food and non-alcoholic beverages (5.3 per cent) and transport (4.9 per cent).
With additional reporting by the Australian Associated Press.