Household spending has increased by nearly five per cent, recent data has shown.
The Australian Bureau of Statistics’ monthly Household Spending Indicator (HSI) for January has shown that the average household spending is up by 4.6 per cent on the same period last year.
The indicator is based on nine everyday spending categories, including food, health, and transport.
In a media release, ABS head of business Tom Lay said spending was up in the majority of categories.
“Household spending returned to growth in January, rising in five of the nine spending categories,” Mr Lay said.
The HSI has also shown how households are spending their money. Depicting an increased growth in non-discretionary spending, whilst discretionary spending remained mostly stable.
“Essential spending rose 0.8 per cent and was driven by health services and spending on motor vehicle repairs and maintenance,” Mr Lay said.
“Discretionary spending was up 0.1 per cent this month, driven by spending on air transport, personal effects and recreational and cultural services.”
Students at the University of Wollongong (UOW) are feeling the strain of the current cost of living crisis.
Bachelor of Arts student Brynn Gerrard, said rising grocery prices are not helping the already difficult time.
“I have to budget more, I haven’t been on any holidays, and I have to be stricter on my spending,” Miss Gerrard said.
“I have to work more because things have gotten more expensive, so I am studying less.”
Young people are having to make difficult decisions, and determine whether to prioritise their spending on wants or needs.
“I have been more conscious because I don’t have as much of a disposable income as I did previously… instead of having more of a disposable income, most of my income goes towards rent,” Miss Gerrard said.
Neuroscience and Psychology student Lauren Hannig said due to higher spending and the increasing fuel crisis, students are finding other ways to cope with the increasing economic pressures.
“I’ve been catching the bus as much as possible, and walking… I am a bit scared that’s not going to continue to help… but for the minute it’s meaning that my fuel tank lasts longer,” Miss Hannig said.
The ABS is set to release the HSI for February 2026 later this week.
