How Aussies have splurged since emerging from brutal Covid lockdowns – while the cost of living rises
- Australians are spending 20 percent more than in the same period last year
- Millions cautiously emerged from months of brutal Covid lockdowns
- Interest rates are rising, making the cost of everyday goods more expensive
Household spending rose 20 percent in October compared to the same time last year, according to the latest figures from the Australian Bureau of Statistics.
As rising interest rates put pressure on inflation, October 2022 marked the 20th consecutive month of household spending growth, with transportation (up 42 percent), clothing (up 32.2 percent), and eating out (up 39.9 percent). rises.
Meanwhile, food spending rose 4.5 percent compared to the previous year.
Household spending on goods increased by 9.3 percent, while services rose by 34.2 percent compared to October 2021 – despite the rising cost of living
Both non-discretionary and discretionary spending increased by more than 20 percent.
Overall, household spending on goods rose 9.3 percent, while services rose 34.2 percent compared to October 2021 – a time when NSW, Victoria and the ACT emerged from their lockdowns.
The ACT and Victoria recorded the highest spending increases over the year, at 36.6 percent and 32.8 percent respectively.
It comes as Australia’s current account balance fell by $17 billion in the September quarter, resulting in a deficit of $2.3 billion.
Treasurer Jim Chalmers (pictured) has said he is “nervous” about interest rate hikes
It is the first deficit in years after 13 consecutive quarters of current account surplus.
According to the latest figures from the ABS, the balance on goods and services declined $11.1 billion but remained in surplus at $31.2 billion, while the net primary income deficit increased $6.4 billion in the quarter to $33.2 billion.
Grace Kim of ABS says the current deficit reflects a “narrowing but robust trade surplus.”
“(This) was offset by a record high income shortfall in the September quarter.
Imports rose by 8.2 percent, while exports fell by 0.2 percent.