As the cost-of-living crisis continues to bear down on several households across Australia, the Australian Bureau of Statistics (ABS) has issued its latest report on Thursday that details the effect this is having on families in the country.
Household spending was 3.6 per cent higher this February compared to the same month a year ago.
“The 3.6 per cent rise in spending follows increases of 1.2 per cent in December, and 2.9 per cent in January,” said Robert Ewing, ABS head of business statistics.
“Growth in household spending has risen from its low point in December 2023.”
The ABS added in its report that spending on transport rose 12.3 per cent, accounting for the largest contribution to total spending growth, as automotive fuel prices increased 4.1 per cent as noted in the monthly Consumer Price Index Indicator.
“Consumers are also spending more on transport services such as air travel, tours, and cruises compared to the same time last year,” said Ewing.
Spending on discretionary goods and services fell 0.2 per cent, while non-discretionary spending rose 6.9 per cent, highlighting the shift in consumer behaviour due to cost-of-living pressures.
Compared to the same month last year, household spending increased in all states and territories. The largest rise in spending were seen in South Australia, up 7.9 per cent, and the Australian Capital Territory, up 7.6 per cent.
All states and territories had higher spending growth rates than in January. South Australia had the largest rise, up from 4 per cent in January to 7.9 per cent in February.
Keeping in mind the rising cost of living in Australia, a Senate inquiry has commenced to investigate how major supermarkets are setting prices and using their market clout when dealing with suppliers.
Separately, in January, Australian Prime Minister Anthony Albanese said that treasurer Jim Chalmers will direct the Australian Competition and Consumer Commission to conduct a 12-month price inquiry into supermarkets.
