New data shows the daily cost of living for the average Australian in September dropped 29% compared to the previous month. However, costs still remain 1.6% higher year on year
The figures are drawn from the Beforepay Cost of Living Index, which summarises the spending of more than 300,000 Australians across several household expense categories including utilities, groceries, food and drink, shopping, petrol and fitness and health.
In dollar terms, the average daily costs dipped from $83.27 in August to $58.81 in September. There was a drop in spending on food and drink, shopping, utilities, durable shopping, and fitness and health to similar figures seen in July 2022. Several categories such as groceries, petrol and auto, and entertainment and leisure returned to similar levels to September last year.
The cost of living remains 1.6% more expensive than this time last year, with the biggest annual increase in food and drink, with Australians spending $11.15 in September 2022, compared to $9.64 last year.
Additional insights include:
- The biggest drop in spending was in durable shopping, which includes items such as washing machines, televisions and tools. The category was down 47% to $6.62, compared to $12.53 for the month of August. This decrease may reflect elevated spending in August due to tax refunds.
- Daily spending on groceries has also declined to $15.20 for September, compared to $18.89 last month, a reduction of 19% to the average bill at the checkout.
- While Australians are spending more on food and drink year on year, they actually spent 23% less compared to the previous month.
For more information about the Cost of Living Index visit: https://blog.beforepay.com.au/? tag=Cost+of+Living+Index
Beforepay CEO Jamie Twiss, said: "The September release of the Beforepay Cost of Living Index shows how hard-working Australians are managing their spending in the current economic environment.”
“Our data shows that over the past month spending has dropped by 29% across all the categories we measure. This includes a significant halt in spending on durable shopping, as well as working Australians reigning in spending on essential items such as groceries and utilities.”
“There’s no question we are starting to see the impacts of higher interest rates, ongoing inflation and a decline in real wages changing spending habits.”
“In the current environment everything costs more, wages aren’t keeping up, and as a result households are tightening their budgets.”
About the Beforepay Cost of Living Index:
The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories. The average income of customers in the sample is approximately $56,000 and the average age is 33, with a broadly representative geographic and gender breakdown. The data may vary depending on the main bank account linked with Beforepay. To the maximum extent permitted by law, Beforepay and its related bodies corporate, make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this article and do not accept any liability for any loss whatsoever arising from the use of this article or its contents or otherwise arising in connection with it.
About Beforepay:
● Beforepay was founded in 2019 to support working Australians who have not been well-served by the traditional financial-services industry.
● Beforepay is an ethical, customer-friendly way to help people manage temporary cash- flow challenges.
● We’ve created a simple, transparent and inexpensive fee model that gives our customers total control. Importantly, unlike traditional products like credit cards, we charge only a small transaction fee, zero interest and no late fees.
● We take our commitment to providing funds responsibly very seriously, and that includes only providing funds to people who meet our strict safeguards.
● Our app also includes free budgeting tools and spending insights. For more information visit: www.beforepay.com.au
● Beforepay is an ethical, customer-friendly way to help people manage temporary cash- flow challenges.
● We’ve created a simple, transparent and inexpensive fee model that gives our customers total control. Importantly, unlike traditional products like credit cards, we charge only a small transaction fee, zero interest and no late fees.
● We take our commitment to providing funds responsibly very seriously, and that includes only providing funds to people who meet our strict safeguards.
● Our app also includes free budgeting tools and spending insights. For more information visit: www.beforepay.com.au
Contact Information: mediaenquiries@beforepay.com.au
