Households have endured a sustained cost-of-living squeeze in 2023 that has changed the way we consume.
Stubbornly high inflation and rising interest rates have also put many family budgets under severe pressure, especially those carrying big mortgages.
The cost-of-living crunch has affected spending patterns.Credit: Natalie Boog
Five charts (below) reveal how spending has shifted amid the cost-of-living crunch and where financial stress is most acute. The analysis of spending patterns and research on consumer delinquency and hardship was compiled by credit bureau illion using credit and banking data from more than 18 million credit consumers.
Elevated inflation, higher interest payments and a rising tax burden have weighed heavily on consumers. The latest economic report card published by the Australian Bureau of Statistics showed real household disposable income fell 4.3 per cent in the year to September 30 – the biggest decline since the 1980s.
In response, shoppers have cut spending on big ticket discretionary items such as electronics, furniture and other household goods.
The purchase of gadgets such as mobile phones, laptops and iPads has been especially hard hit.
Louis Tsang, illion’s head of analytics and data services, says spending on consumer electronics has been 40 per cent lower over the past six months compared with the same period in 2022.
Feeling the cost-of-living crisis? Charts reveal who’s getting off lightly, and who’s suffering most
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25.12.2023
Households have endured a sustained cost-of-living squeeze in 2023 that has changed the way we consume.
Stubbornly high inflation and rising interest rates have also put many family budgets under severe pressure, especially those carrying big mortgages.
The cost-of-living crunch has affected spending patterns.Credit: Natalie Boog
Five........
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