A new survey has revealed that cost of living pressures is dominating the worries of Australians, with 59% of people citing increasing grocery and electricity prices, rising rent, and higher interest rates as their main concerns. The research indicates that these worries will continue to plague Australians in the year 2023.
The Consumer Pulse Report from Canstar revealed that 44 per cent of Australians are not confident that the government and RBA will be able to ease inflation and cost of living pressures in 2023.
With the economy in a state of flux, many Australians are concerned about the future of their financial security.
The survey found that Australians are experiencing the highest levels of cost of living pressures since the early 2000s. It also revealed that almost 50% of respondents are concerned about their ability to cover basic living costs, such as food, rent, and utilities.
The survey further showed that rising grocery and electricity prices are the primary sources of cost of living pressures for Australians. Grocery prices have been rising steadily over the past few years, with an average increase of around 3.9% over the past 12 months. Electricity prices have also been on the rise, with an average increase of 7.1% over the past year.
On average, Australians have seen their quarterly electricity bill increase by 4.5 percent to a total of $371, whilst their gas bill has risen by 13 percent over the same period to an average of $265 per quarter.
Steve Mickenbecker, the Canstar group executive of financial services, warned that if the RBA’s projected 8% inflation rate in December is sustained, it could cause immense harm to both the economy and people’s living conditions in the future.
“Australians have the biggest concern for 2023 of just being able to afford food, which is understandable as the average weekly cost of groceries has gone up for two-thirds of the population,” Mr. Mickenbecker said.
“Most Australians have come to understand that, due to low-interest rates and inflation, the period of significant wealth growth from increasing property values and excessive spending is over for the time being.”
