Never harder to afford a holiday, while cost of basic staples soar

It has never been harder for Queenslanders to afford a holiday or even purchase basic staples like milk and bread. LATEST DATA

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It has never been harder for Queenslanders to afford a holiday, while the cost of basic staples like milk, bread, cheese and fuel has surged by double figures, the latest inflation data reveals.

There is more pain on the way, with the increase in inflation expected to put more pressure on the RBA to increase interest rates in February.

Brisbane’s inflation rose by 7.7 per cent, over the year to December, almost on par with the national rate of 7.8 per cent, based on Australian Bureau of Statistics data released on Wednesday.

The cost of basic staples is soaring in Brisbane. Picture: James Elsby

The cost for Queenslanders to take a holiday rose by a record 22 per cent, in terms of how much they are paying for travel and accommodation even within Australia.

Treasurer Jim Chalmers said there were “extreme price pressures” on Australians right now and that while he hoped inflation had now peaked it would stay “higher than we’d like for longer than we’d like”.

Key stand outs in price rises over 2022 for Brisbane included:

* Bread up 13.6 per cent

* Milk up 16.6 per cent

* Breakfast cereal up 15 per cent

* Cheese up 14.6 per cent

* Fruit up 12.9 per cent

* Tea and coffee up 11.9 per cent

* Fuel up 13.9 per cent

In a surprise turnaround, electricity prices went down by 6.7 per cent in Queensland, the only state to record this result. It was attributed to the State Government’s $175 cost of living rebate.

There’s also been some relief ahead of Australia Day, with the cost of lamb rising only 2.2 per cent and beer 4.9 per cent.

People entering the property market found no such relief, with the amount owner-occupiers are paying for a new home having risen 19 per cent over 2022, while rents rose 6 per cent in Brisbane.

Treasurer Jim Chalmers. Picture: NCA NewsWire / Gary Ramage

Mr Chalmers said markets had already predicted a ninth consecutive rate rise in February, before the inflation figures were released.

“Most people will expect that there will be more to come,” he said.

“We are and we will provide cost of living relief.”

He said this included cheaper child care and medicine measures from October’s budget, while electricity price relief would be a centrepiece of his second budget in May.

“We are realistic about the extreme price pressures that Australians are feeling right now,” Mr Chalmers said.

“The impact of interest rate hikes and the cost and consequences of a war in Europe and a period of substantial volatility in the global economy as well.

“Our expectation and our hope is that inflation has peaked, but it will still be higher than we’d like for longer than we’d like even on the other side of the peak of inflation.”