Rising divide between ‘haves and have-nots’

A composite image of Australian currency and people lined up at a grocery story to demonstrate the rising cost of living.

The price of dwelling grew once more within the June quarter, nevertheless it was the smallest rise in September 2021. (Supply: AAP / Getty)

The value of dwelling grew once more within the June quarter – rising 0.8 per cent and 6 per cent yearly – however was the bottom rise since September 2021, in accordance with the Australian Bureau of Statistics (ABS).

“Whereas costs continued to rise for many items and providers, there have been some offsetting worth falls this quarter, together with for home vacation journey and lodging and automotive gasoline,” ABS head of costs statistics Michelle Marquardt mentioned.

What’s costing essentially the most?

Essentially the most important contributors to the rise within the June quarter have been rents (up 2.5 per cent), worldwide vacation journey and lodging (up 6.2 per cent), different monetary providers (up 2.5 per cent) and new houses bought by proprietor occupiers (up 1 per cent).

“Rents recorded the strongest quarterly rise since 1988, reflecting low emptiness charges amid a tight rental market. Rental worth progress for studios continued to outpace the expansion for homes,” Marquardt mentioned.

“Increased demand for worldwide journey, significantly to Europe with the beginning of the European summer time peak season, led to cost will increase.”

Meals costs additionally rose this quarter (up 1.6 per cent), including to the will increase of 1.6 per cent and 0.9 per cent within the March 2023 and December 2022 quarters.

The rise was pushed by meals out and takeaway meals (up 1.7 per cent), fruit and greens (up 2.4 per cent) and bread and cereal merchandise (up 2.9 per cent).

“A scarcity of potatoes resulting from moist climate in key rising areas late final 12 months has continued to position stress on costs for potato merchandise, together with takeaway sizzling chips, potato crisps and frozen potato merchandise. Vegetable costs rose resulting from some salad greens, like tomatoes and lettuces, popping out of season,” Marquardt mentioned.

The divide is rising

In July, the typical Aussie reported saving $730 monthly, in accordance with Finder’s Shopper Sentiment Tracker. That’s in comparison with $598 in June.

And, whereas Aussies are saving extra, it’s solely those that have been in a position to put additional money away. Others have been relying extra closely on purchase now, pay later (BNPL) providers, indicating some are having to borrow cash to spend.

“Whereas Aussies are, on common, saving more cash and feeling barely extra optimistic in the direction of housing affordability, we’re nonetheless dealing with important financial headwinds,” Finder private finance professional Tim Bennet mentioned.

“There’s a variety of components exerting downwards stress on households just lately and sentiment is predicted to maintain falling.

“The figures additionally level to a widening hole between the haves and the have-nots – some are in a position to put away additional money, whereas others have gotten more and more reliant on BNPL platforms.”

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