New data from the Australian Bureau of Statistics (ABS)я╗┐ showed for employee households – where the primary source of income is wages – the cost of living over the past year grew by 9.3 per cent.
That is the highest annual increase in living expenses since 1987.
Other households fared equally poorly, albeit better than those whose primary expense was repaying a mortgage.
Self-funded retirees saw annual living costs increase by 7.6 per cent, the largest since 1999, while я╗┐age pensioners saw their costs rise by 7.3 per cent.
Head of prices statistics Michelle Marquardt said employee households were particularly impacted by the rapid rise in interest rates, given that mortgages comprised a large component of expenses for that demographic.
я╗┐”Employee households have recorded their largest quarterly rise since the September 2000 quarter which followed the introduction of the GST, and the largest annual rise since the series commenced in 1999,” she said.
“Mortgage interest charges for employee households rose 26.6 per cent over the quarter, and 61.3 per cent over the year, with banks passing on the Reserve Bank of Australia’s cash rate rises to interest rates for both variable and new fixed rate home loans.”
When accounting for all households – including pensioners, self-funded retirees and those on government benefits – the greatest increase in living costs came from Christmas travel and recreation, food costs and housing expenses such as utility bills.
я╗┐Marquardt said households were feeling the pinch of major corporations and providers passing on higher business costs to customers.
“Annually, food prices rose between 9 and 10 per cent, driven by rises for meals out and takeaway foods, and fruit and vegetables,” she said.
“Utilities prices rose between 8 per cent and 10 per cent, driven by higher wholesale prices for gas and electricity being passed on to consumers.”
EnergyAustralia, Origin Energy and AGL all raised tariffs today, February 1, to reflect higher operating costs.
In real terms, я╗┐that will add an extra $480 to the yearly bill for Energy Australia Australia customers in the state, $370 per year more for those with Origin Energy and a further $326 per year for AGL customers.я╗┐
Customers in New South Wales, ACT, Queensland and South Australia can expect increases of less than $100.
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