Cost of food, education and power is spiralling in Victoria. This graph proves it

The daily costs of eating, travelling, learning and just trying to stay healthy have continued to spiral for Victorians over the past year.

Victorians are now spending 16 per cent more to live than they were at the end of 2021, according to the latest consumer price index data spelt out in the state budget.

In response, the state government will plough $2.3 billion into households to try to ease cost-of-living pressures, targeting key areas of household bills, education, transport and healthcare.

Consumer data for Victoria reveals the cost of food has soared by 19 per cent since the end of 2021.

Education costs have risen even more, and are now 25 per cent higher than they were 3½ years ago, while insurance and financial services are 20 per cent higher.

The basic costs of eating and learning are now rising faster than those for cigarettes and alcohol, which have jumped by 19 per cent.

Grocery prices have gone up 19 per cent since 2021.Credit: Bloomberg

Having a roof over your head – including paying rent, buying a home or the combined impact of utility bills – is now 18 per cent more expensive than it was in December 2021.

A further breakdown of utilities shows that while gas is now 50 per cent more expensive, electricity is cheaper due to government energy rebates.

Transport costs are up by 11 per cent, but health expenses have jumped by more than 16 per cent.

The pace at which the cost of living is rising has at least slowed from the breakneck speeds felt by families at the end of 2022, when consumer prices were rising by 8 per cent. As of March 2025, consumer prices were rising by 2.3 per cent.

In another positive, Victorian wages grew 3.2 per cent in the final quarter of 2024, and are expected to continue exceeding inflation over the life of the 2025-26 budget and beyond.

To ease the cumulative impact of increased costs, Treasurer Jaclyn Symes unveiled $156 million in programs intended to support household bills, including another round of $100 Power Saving Bonuses for households in need and free public transport for under-18s.

Rebates for solar hot water systems, food relief packages for those in greatest need, and a continuation of free kinder for three and four-year-olds have all been flagged as programs aimed at relieving everyday costs for Victorians.

“Families are counting every dollar. Parents are watching the price of groceries, petrol, rent and bills inch higher week by week,” Symes said.

“The cost of living has hit hard. And higher interest rates have only made it harder. That’s why this budget delivers targeted, meaningful cost-of-living relief.”

Victorian Council of Social Service CEO Juanita Pope welcomed investments to help children better participate in school and extracurricular activities, as well as free kinder, and said targeted electricity bill relief and rebates for hot water heat pumps would make a difference.

“The 2025 Victorian budget delivers for many Victorians who are doing it tough in the cost-of-living crisis, struggling to afford the basics like food, transport and energy bills,” she said.

“However, this is also a budget that expands prison beds while underinvesting in addressing the root causes of offending. This includes doing little to help Victorians who are struggling to get or keep a roof over their heads. Instead of growing prisons, we should grow social housing.”

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.