Australia’s spending jumps 25% in August

New data shows daily spending for the average Australian jumped 25% in August, to $83.27 per day. The figure is drawn from the Beforepay Cost of Living Index, which summarises the spending of more than 250,000 Australians across several household expense categories. These categories include utilities, groceries, food and drink, shopping, petrol and fitness and health.

According to the Beforepay Cost of Living Index for August, daily spending increased from $66.46 in July 2022. The biggest increases were in utilities, durables, fitness and health, and entertainment, which each contributed an increase of more than 30% compared to July 2022. Every category was up over the month, led by fitness and health (51.57% increase). Shopping had the smallest percentage increase at 12.4%.

Over the last year, daily spending for the average Australian has increased 42.3%, from $58.50 in August 2021.

Additional insights include:

• Utilities are up 37.56% month-to-month and have increased 57.87% compared to last August, a period when we were all spending more time at home due to COVID lockdowns.
• Spending on food and drink (50.78% increase) and entertainment and leisure (28.79% increase) were all up significantly compared to last August. The changes come as a result of a mixture of price increases and a return to normal living activities, compared to lockdowns in several states that impacted spending in August 2021.
• Spending on petrol has increased by 22% month-to-month as supply issues continue to push up oil prices.

Beforepay CEO, Jamie Twiss, said: "The August release of the Beforepay Cost of Living Index once again demonstrates the significant impact the current economic environment is having on working Australians.”

“Our data shows that over the past month spending has gone up on average 25% across all the categories we measure. This includes considerable increases to the household essentials such as groceries, petrol and utilities.”

“Supply issues and the rebound of the oil market continues to push up the price of petrol, while supply chain issues continue to increase the price of groceries.”

“Interestingly we saw shopping has only increased by 12% month-to-month, which was the smallest increase across all the categories we measure. This could suggest that Australians are starting to curb their discretionary spend given the current economic landscape.”

About the Beforepay Cost of Living Index

The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories. The average income of customers in the sample is approximately $56,000 and the average age is 33, with a broadly representative geographic and gender breakdown. The data may vary depending on the main bank account linked with Beforepay. To the maximum extent permitted by law, Beforepay and its related bodies corporate, make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this article and do not accept any liability for any loss whatsoever arising from the use of this article or its contents or otherwise arising in connection with it.

For more information about the Cost of Living Index visit: www.blog.beforepay.com.au/the-beforepay-cost-of-living-index-july-2022

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