News about Australia

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Living costs climbing due to interest rates, fuel prices and insurance premiums

Australian workers are doing it tougher than other households in the cost of living fight, according to new figures.

Rising fuel prices, insurance premiums and interest rates are contributing to an increase in living costs for many households, according to the latest data from the Australian Bureau of Statistics.

But it is Australian workers who are suffering the most in the cost of living fight.

Households with workers had the biggest cost jump in the September quarter, which was higher than the 1.5 per cent rise in the June quarter.

“Increases in living costs in the September 2023 quarter ranged from 0.5 per cent to 2.0 per cent depending on the expenditure patterns of the different household types,” ABS head of prices statistics Michelle Marquardt said.

She said households where the main income was wages or salary recorded the largest increase in living costs of all household types, with a rate almost twice that of the Consumer Price Index, which rose 1.2 per cent.

“Higher global oil prices for automotive fuel and increased insurance premiums across house, home contents and motor vehicles contributed to greater living costs for all household types,” Ms Marquardt said.

The ABS noted the Living Cost Indexes included mortgage interest charges, which affected working Australians the most.

“Mortgage interest charges rose 9.3 per cent following a 9.8 per cent rise in the June 2023 quarter,” Ms Marquardt said.

“While the Reserve Bank of Australia has not increased the cash rate since July 2023, previous interest rate increases and the rollover of some expired fixed-rate to higher-rate variable mortgages resulted in another strong rise this quarter.”

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