Life is more expensive, here's the proof

Australians are crumbling under the rising cost of living, as the ABS releases fresh household spending data.

Australians are crippling under the rising cost of living, as the ABS releases fresh household spending data.

We are spending 10% more now than we did a year ago, as Australia's rising cost of living pressures forces us to fork out more for petrol, groceries and clothes. 

The latest monthly spending figures, released on Tuesday by the Australian Bureau of Statistics, show household spending increased 10.2% through the year, with a 15.9% increase on services and 5% on goods. Both spending on essentials and non-essentials increased – unsurprising given the current spike of inflation to 6.1%. 

Just last week, the price of a beer shot up to $15 a pint. Meanwhile, milk prices are set to spike and a head of lettuce costs upwards of $5.50.

Transport spending increased by 22.7%, driven by record-breaking petrol prices and post-Covid demand for flying again. Spending on hotels, cafes, and restaurants was up 17.1%, clothing and footwear increased by 16.3% and recreation and culture spending is up 15.5%.

“This was off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to Covid-19 were experienced across the country,” Jacqui Vitas, head of macroeconomic statistics at the ABS, said.

“Spending categories most impacted from Covid-19 responses (transport, hotels, cafes and restaurants, and clothing and footwear) have now returned to pre-pandemic levels.”

Food spending grew by 1.8%, health by 0.8% and alcoholic beverages and tobacco by 0.9%.