The Australian Bureau of Statistics (ABS) has shown a continuing rise in living costs ranging from 0.6 per cent to 1.6 per cent across all household types.
The data for the March 2025 quarter has shown that health, housing, food and non-alcoholic beverages were the main contributors to the increase.
Households that rely on government payments as their main source of income saw the largest rise across the quarter.
ABS Price Statistics acting head, Neel Tikaram said multiple factors are contributing to the rises in living costs.
“Rises in pharmaceutical products, medical and hospital services, electricity and fruit and vegetables have contributed to higher living costs for all household types this quarter,” Mr Tikaram said.
Increases in overall health costs impacted aged pensioners, other government transfer recipients, and pensioner and beneficiary households compared to employee and self-funded retiree households.
He said this was due to the reduction in households that qualify for subsidies under the Medicare Safety Net and Pharmaceutical Benefits Scheme (PBS).
Source: ABS
University of Wollongong student Henry Jackes said the cost of living crisis has taken a toll on his health and household necessities.
“I can’t remember the last time I went to the doctor or dentist. It’s not something I can afford to spend my money on right now,” Mr Jackes said.
“Groceries, food and rent take up such a large portion of my income, there isn’t much left over for stuff like that.”
Mr Tikaram said a reason for increased spending in employee households is due to mortgage interest changes and education.
“The rise in mortgage interest charges was driven by higher mortgage debt levels and the continued rollover of expired fixed rate mortgages to higher variable rate mortgages,” Mr Tikaram said.
“The effect of the Reserve Bank of Australia’s cash rate cut in February 2025 will be seen in the June 2025 quarter due to the timing of the change in the cash rate.”
Positive changes are predicted for employee households, with the cost of living growth slowing in the last two years.
Source: ABS
However, Mr Tikaram said that annual growth of 3.4 per cent in employee living costs has continued to slow this quarter, down from its peak of 9.6 per cent in the June 2023 quarter.
Design by Max Arnold
Feature image: NSW Government
Additional reporting by Layney Britton