Aussies predict the cost of living will NOT get any easier in 2023
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The past few years have been particularly hard on Aussies when it comes to finances. Interest rates have risen to unprecedented levels, putting strain on individuals, homeowners and renters alike. Rent has rapidly risen, and grocery prices have also skyrocketed.
As a result, the majority of Aussies are worried about the state of their finances heading into the new year - this is especially true for many of our members who are relying on their pensions.
Unfortunately, the situation isn't expected to improve in the foreseeable future either - this sobering reality was backed up by a recent Canstar Consumer Pulse Report, which surveyed 2157 Australians across age groups and states/territories nationwide.
It found that most Aussies don't anticipate any relief from the high cost of living hitting them next year.
The new study conducted by Canstar found that cost of living expenses such as electricity, petrol, groceries, and bills are the biggest source of anxiety among the general population.
The findings indicated that putting food on the table is the number one financial concern among Australian consumers, as the price of groceries remains the most significant worry for 18 per cent of respondents.
This number has increased more than twice since Canstar's first consumer study five years ago, in which only 7 per cent of Australians cited groceries as a top concern.
Almost two-thirds of the survey respondents reported that they spend more on their weekly grocery shopping.
On the other hand, only 7 per cent said that their spending had stayed the same, but they're already buying less food. Some have even managed to cut their spending down by purchasing cheaper cuts of meat or opting for supermarket-brand items.
In addition to groceries and energy, rising petrol prices were also a major concern. More than half of the respondents said that they'd experienced an increase of $31 in their monthly energy bill, resulting in an added expense of $188 for the year.
Canstar revealed that despite this, over a quarter of respondents were able to maintain or increase their savings rate from the previous year.
Canstar Group's Finance Expert, Steve Mickenbecker, said that while the Reserve Bank (RBA) predicted that inflation would start dropping next year, Aussies aren’t buying it.
'The Reserve Bank expects inflation to peak at over 8 per cent in December - a number that, if sustained, could do severe damage to the economy and people's living standards for quite a while to come,' Mickenbecker said.
'It would also mean further home loan interest rate rises into the future, which will be particularly damaging to potential first home buyers.'
After the RBA raised the cash rate for the eighth consecutive month last week, Mickenbecker predicts that interest rates might rise to 3.85 per cent in 2023. However, 39 per cent of homeowners and 27 per cent of investors say they are not prepared for these rates.
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As a result, the majority of Aussies are worried about the state of their finances heading into the new year - this is especially true for many of our members who are relying on their pensions.
Unfortunately, the situation isn't expected to improve in the foreseeable future either - this sobering reality was backed up by a recent Canstar Consumer Pulse Report, which surveyed 2157 Australians across age groups and states/territories nationwide.
It found that most Aussies don't anticipate any relief from the high cost of living hitting them next year.
As 2023 approaches, most Aussies are preparing for higher living expenses. Credit: Pexels/Karolina Grabowska.
The new study conducted by Canstar found that cost of living expenses such as electricity, petrol, groceries, and bills are the biggest source of anxiety among the general population.
The findings indicated that putting food on the table is the number one financial concern among Australian consumers, as the price of groceries remains the most significant worry for 18 per cent of respondents.
This number has increased more than twice since Canstar's first consumer study five years ago, in which only 7 per cent of Australians cited groceries as a top concern.
Almost two-thirds of the survey respondents reported that they spend more on their weekly grocery shopping.
On the other hand, only 7 per cent said that their spending had stayed the same, but they're already buying less food. Some have even managed to cut their spending down by purchasing cheaper cuts of meat or opting for supermarket-brand items.
In addition to groceries and energy, rising petrol prices were also a major concern. More than half of the respondents said that they'd experienced an increase of $31 in their monthly energy bill, resulting in an added expense of $188 for the year.
Canstar revealed that despite this, over a quarter of respondents were able to maintain or increase their savings rate from the previous year.
Many Aussies said they had to take money out of their savings to make ends meet. Credit: Unsplash/Towfiqu barbhuiya.
Canstar Group's Finance Expert, Steve Mickenbecker, said that while the Reserve Bank (RBA) predicted that inflation would start dropping next year, Aussies aren’t buying it.
'The Reserve Bank expects inflation to peak at over 8 per cent in December - a number that, if sustained, could do severe damage to the economy and people's living standards for quite a while to come,' Mickenbecker said.
'It would also mean further home loan interest rate rises into the future, which will be particularly damaging to potential first home buyers.'
After the RBA raised the cash rate for the eighth consecutive month last week, Mickenbecker predicts that interest rates might rise to 3.85 per cent in 2023. However, 39 per cent of homeowners and 27 per cent of investors say they are not prepared for these rates.
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