Cost Of Living Going Up

Posted on October 23rd, 2012 · Posted in News

The costs of basic household necessities — like electricity, school fees, petrol and vegetables — have risen at more than twice the rate of inflation over the past decade.

Ahead of key inflation figures due on Wednesday, a News Limited analysis of Bureau of Statistics data found water and sewerage rates were the biggest price pressure point of the decade — more than doubling (up by 111%).

Overall, the cost of the average basket of consumer goods bought by households rose 31% over the past decade.  But many households experienced even steeper rises.

Householders on the dole went backwards in real terms over the decade, as their benefits increased in line with inflation but their household costs went up by 38%.

Necessities make up a bigger slice of spending for lower-income households and these items dominate a list of the top 10 price risers.  Electricity prices also doubled over the decade (up 103%), followed by high school fees (up 95%), cigarettes (up 90%), gas (up 86%), medical and hospital charges (up 85%), preschool and primary school fees (up 78%), property rates (up 72%), petrol (up 68%) and vegetables (up 65%).

Discretionary items dominate the list of top 10 price falls.  The cost of audio, visual and computing equipment fell 80 % the biggest fall followed by sports and camping equipment (down 16%), small household appliances (down 14%), games, toys and hobbies (down 14%), men’s shoes (down 13%), glassware, tableware and utensils (down 12%), cars (down 12%), household textiles (down 12%), baby and children’s clothes (down 11%) and major household appliances (down 11%).

Now is a great time to review your finances to make sure you’re getting the best deal you can & help reduce the impact of rising costs of living.  Contact us today for a free finance review.