The Australian Bureau of Statistics (ABS) today released its cost of living indices for the September quarter, which revealed a moderation of cost pressures for the typical Australian worker, with retirees and those on welfare fairing less favourably (see below table).
According to the ABS, the cost of living for households headed by working Australians rose by only 0.9% in the year to September – well below the 3% average wages growth and the 2.2% increase in the Consumer Price Index (CPI).
The estimated increase in the cost of living was lower than the official CPI inflation figure, since it includes the cost of mortgage repayments, which have fallen as interest rates have declined.
For households headed by Australians on benefits, old age pensioners and retirees the cost of living rose by 2% over the year – marginally below CPI.
As noted by Peter Martin, electricity prices grew at their slowest annual pace in six years – just 6.1% – following the 18.5% jump in prices in September 2012 following the introduction of the carbon tax.
A breakdown of costs by expenditure component and group is provided below.
