Australian households report cost of living squeeze

Almost 46 per cent of Australians have cut-back essentials due to rising concerns over electricity, fuel and grocery expenses according to a national consumer survey by Choice.

In its first national Consumer Pulse Report, the consumer advocacy organisation says electricity topped the list of household expense concerns at 84 per cent, with fuel (81 per cent) and food and groceries (77 per cent) close behind.

Due to these rising expenses over the last year, Choice found, 46 per cent of Australians reported cutting back on essential spending and 62 per cent on non-essentials.

“Almost one-in-three respondents told us they find it difficult to get by on their current income, with one-in-five saying they have scraped through to payday by living off credit or borrowing from friends or family,” says Choice CEO Alan Kirkland.

“This reveals some striking concerns with cost-of-living, which is perhaps not surprising at a time when inflation is outstripping sluggish wages growth, retail sales are fragile and the political debate remains focused on household expenses,” Kirkland says.