{"id":98742,"date":"2023-12-15T05:06:04","date_gmt":"2023-12-15T05:06:04","guid":{"rendered":"https:\/\/arielle.com.au\/?p=98742"},"modified":"2026-01-13T21:15:28","modified_gmt":"2026-01-13T21:15:28","slug":"cost-of-living-in-australia","status":"publish","type":"post","link":"https:\/\/arielle.com.au\/cost-of-living-in-australia\/","title":{"rendered":"The Cost Of Living In Australia Is Worse Than You Think"},"content":{"rendered":"Reading Time: <\/span> 13<\/span> minutes<\/span><\/span>\n

Australia has felt expensive for a while now. Groceries cost more (rising 3% over the year to October 2025). Power bills sting (jumping by more than 30% year-on-year at their peak). Big purchases get postponed \u201cuntil next year.\u201d <\/p>\n\n\n\n

And for many households, money stress spills over into marriage strain and mental health issues.<\/p>\n\n\n\n

But here\u2019s the twist: things may finally be starting to ease.<\/span><\/div><\/div>\n\n\n\n

According to the latest ABS spending data<\/a>, Australians spent 5.6% more than a year ago (over the 12 months to October 2025). <\/p>\n\n\n\n

And that extra money isn\u2019t just going on essentials.<\/p>\n\n\n\n

We\u2019re spending more on clothes, furniture, travel, and eating out – early signs that consumer confidence, while fragile, is returning.<\/p>\n\n\n\n

<\/div>\n\n\n\n
Key Takeaways:<\/th><\/tr><\/thead>
An uptick in inflation<\/strong> and interest rates continues to erode Australians\u2019 disposable income and savings.<\/td><\/tr>
Government<\/strong> measures, including tax cuts in 2026-27, could help reduce cost of living pressures.<\/td><\/tr>
Wages are finally outpacing inflation,<\/strong> but it\u2019s unclear whether that\u2019s enough to deliver meaningful real income growth for households.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Spending rose across the board during 2025, on both non-essentials and everyday necessities.<\/p>\n\n\n\n

\u201cMajor concerts and cultural festivals drove up demand for catering, hospitality and hotel stays in major cities,\u2019 \u2014 Tom Lay, ABS head of business statistics.<\/em><\/em><\/span><\/div><\/div>\n\n\n\n

However, Aussies still coughed up more for essentials:<\/p>\n\n\n\n