Employees’ annual living costs highest on record

Media Release

Released

3/05/2023

Source

Selected Living Cost Indexes, Australia, March 2023

All households saw increases in annual living costs in the March 2023 quarter, according to the latest data from the Australian Bureau of Statistics (ABS).

Michelle Marquardt, ABS head of prices statistics, said: "increases ranged from 7.1 to 9.6 per cent, all higher than the 7.0 per cent annual increase in the Consumer Price Index (CPI).

Selected Living Cost Indexes (LCIs) by household type and CPI, Australia, quarterly and annual movement (%)
	Change from previous quarter	Annual Change
Consumer Price Index (CPI)	1.4	7.0
Employee LCI	2.0	9.6
Age pensioner LCI	2.2	7.2
Other government transfer recipient LCI	2.1	7.4
Self-funded retiree LCI	1.3	7.1
Pensioner and beneficiary LCI (PBLCI)	2.2	7.3

Selected Living Cost Indexes (LCIs) by household type and CPI, Australia, quarterly and annual movement (%)

["","Change from previous quarter","Annual Change"]

[["Consumer Price Index (CPI)","Employee LCI","Age pensioner LCI","Other government transfer recipient LCI","Self-funded retiree LCI","Pensioner and beneficiary LCI (PBLCI)"],[[1.3999999999999999],[2],[2.2000000000000002],[2.1000000000000001],[1.3],[2.2000000000000002]],[[7],[9.5999999999999996],[7.2000000000000002],[7.4000000000000004],[7.0999999999999996],[7.2999999999999998]]]

[]

[{"axis_id":"0","tick_interval":"","axis_min":"","axis_max":"","axis_title":"","precision":-1,"axis_units":"","tooltip_units":"","table_units":"","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

[{"value":"0","axis_id":"0","axis_title":"Percentage change (%)","axis_units":"","tooltip_units":"(%)","table_units":"","axis_min":"0","axis_max":"10","tick_interval":"1","precision":"-1","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

“The magnitude of price changes varies between household types due to their different spending patterns.

“It’s important to note that today’s Living Cost Indexes include the impact of mortgage interest charges, but the CPI does not as it includes the cost of building a new dwelling instead. As a result, living costs for all household types rose more than the CPI,” Ms Marquardt said.

Main annual contributors to cost of living increases (per cent increase)
Employee	Mortgage interest charges (78.9 per cent) Food (7.9 per cent)
Age pensioner	Food (8.2 per cent) Housing (8.4 per cent)
Other government transfer recipient	Housing (7.4 per cent) Food (8.3 per cent)
Self-funded retiree	Recreation (10.0 per cent) Food (8.0 per cent)
Pensioner and beneficiary (PBLCI)	Housing (7.8 per cent) Food (8.3 per cent)

“Living costs for employee households recorded the largest annual rise of all household types, at 9.6 per cent; the largest increase since this series started in 1999. The last time the CPI recorded an annual increase of 9.6 per cent was in 1986.

“Employee households were particularly impacted by increases in mortgage interest charges, which are a larger proportion of their spending than for the other household types. Mortgage interest charges rose 78.9 per cent over the year. This was up from a 61.3 per cent annual rise in the December 2022 quarter reflecting the Reserve Bank of Australia’s cash rate rises,” Ms Marquardt said.

Employee households and CPI, Australia, annual movement (%)
	Consumer Price Index (CPI) (%)	Employee LCI (%)
Mar-86	9.2
Jun-86	8.5
Sep-86	8.8
Dec-86	9.6
Mar-87	9.4
Jun-87	9.3
Sep-87	8.3
Dec-87	7.2
Mar-88	6.8
Jun-88	7.2
Sep-88	7.3
Dec-88	7.6
Mar-89	6.8
Jun-89	7.5
Sep-89	8
Dec-89	7.8
Mar-90	8.7
Jun-90	7.7
Sep-90	6.1
Dec-90	6.9
Mar-91	4.8
Jun-91	3.3
Sep-91	3.1
Dec-91	1.5
Mar-92	1.7
Jun-92	1.2
Sep-92	0.8
Dec-92	0.3
Mar-93	1.2
Jun-93	1.8
Sep-93	2.2
Dec-93	1.8
Mar-94	1.5
Jun-94	1.8
Sep-94	2
Dec-94	2.6
Mar-95	3.7
Jun-95	4.5
Sep-95	5.1
Dec-95	5.1
Mar-96	3.8
Jun-96	3.1
Sep-96	2.1
Dec-96	1.5
Mar-97	1.4
Jun-97	0.3
Sep-97	-0.4
Dec-97	-0.3
Mar-98	-0.1
Jun-98	0.7
Sep-98	1.4
Dec-98	1.5
Mar-99	1.2
Jun-99	1	0.6
Sep-99	1.8	1.2
Dec-99	1.9	1.2
Mar-00	2.8	2.6
Jun-00	3.1	3.5
Sep-00	6.1	6.2
Dec-00	5.8	6.4
Mar-01	6	6.5
Jun-01	6.1	5.6
Sep-01	2.5	2.1
Dec-01	3.1	2.1
Mar-02	3	1.9
Jun-02	2.8	2.2
Sep-02	3.2	3.2
Dec-02	2.9	3.3
Mar-03	3.3	3.7
Jun-03	2.6	3
Sep-03	2.6	2.6
Dec-03	2.4	2.5
Mar-04	2	2.5
Jun-04	2.5	3.3
Sep-04	2.3	3.1
Dec-04	2.5	3.4
Mar-05	2.4	2.7
Jun-05	2.5	2.9
Sep-05	3.1	3.6
Dec-05	2.8	3.1
Mar-06	2.9	3.6
Jun-06	4	4.5
Sep-06	4	4.5
Dec-06	3.3	4.3
Mar-07	2.5	3.5
Jun-07	2.1	3.1
Sep-07	1.8	2.8
Dec-07	2.9	3.5
Mar-08	4.3	5
Jun-08	4.4	5.8
Sep-08	5	6.2
Dec-08	3.7	4.5
Mar-09	2.4	2.4
Jun-09	1.4	-0.8
Sep-09	1.2	-1.1
Dec-09	2.1	0.3
Mar-10	2.9	2
Jun-10	3.1	4.5
Sep-10	2.9	4.7
Dec-10	2.8	4.5
Mar-11	3.3	4.8
Jun-11	3.5	4.5
Sep-11	3.4	3.9
Dec-11	3	3.3
Mar-12	1.6	1.2
Jun-12	1.2	0.7
Sep-12	2	0.7
Dec-12	2.2	0.7
Mar-13	2.5	1
Jun-13	2.4	0.7
Sep-13	2.2	0.9
Dec-13	2.7	1.3
Mar-14	2.9	2.1
Jun-14	3	2.3
Sep-14	2.3	1.9
Dec-14	1.7	1.6
Mar-15	1.3	0.9
Jun-15	1.5	0.9
Sep-15	1.5	0.7
Dec-15	1.7	1.1
Mar-16	1.3	1.1
Jun-16	1	1
Sep-16	1.3	1.2
Dec-16	1.5	1
Mar-17	2.1	1.5
Jun-17	1.9	1.3
Sep-17	1.8	1.5
Dec-17	1.9	2
Mar-18	1.9	2
Jun-18	2.1	2.3
Sep-18	1.9	2
Dec-18	1.8	1.9
Mar-19	1.3	1.4
Jun-19	1.6	1.6
Sep-19	1.7	1.3
Dec-19	1.8	1
Mar-20	2.2	1.1
Jun-20	-0.3	-2.1
Sep-20	0.7	-0.9
Dec-20	0.9	-0.5
Mar-21	1.1	0
Jun-21	3.8	3.3
Sep-21	3	2.6
Dec-21	3.5	2.6
Mar-22	5.1	3.8
Jun-22	6.1	4.6
Sep-22	7.3	6.7
Dec-22	7.8	9.3
Mar-23	7	9.6

Employee households and CPI, Australia, annual movement (%)

["","Consumer Price Index (CPI)","Employee LCI"]

[["Mar-86","Jun-86","Sep-86","Dec-86","Mar-87","Jun-87","Sep-87","Dec-87","Mar-88","Jun-88","Sep-88","Dec-88","Mar-89","Jun-89","Sep-89","Dec-89","Mar-90","Jun-90","Sep-90","Dec-90","Mar-91","Jun-91","Sep-91","Dec-91","Mar-92","Jun-92","Sep-92","Dec-92","Mar-93","Jun-93","Sep-93","Dec-93","Mar-94","Jun-94","Sep-94","Dec-94","Mar-95","Jun-95","Sep-95","Dec-95","Mar-96","Jun-96","Sep-96","Dec-96","Mar-97","Jun-97","Sep-97","Dec-97","Mar-98","Jun-98","Sep-98","Dec-98","Mar-99","Jun-99","Sep-99","Dec-99","Mar-00","Jun-00","Sep-00","Dec-00","Mar-01","Jun-01","Sep-01","Dec-01","Mar-02","Jun-02","Sep-02","Dec-02","Mar-03","Jun-03","Sep-03","Dec-03","Mar-04","Jun-04","Sep-04","Dec-04","Mar-05","Jun-05","Sep-05","Dec-05","Mar-06","Jun-06","Sep-06","Dec-06","Mar-07","Jun-07","Sep-07","Dec-07","Mar-08","Jun-08","Sep-08","Dec-08","Mar-09","Jun-09","Sep-09","Dec-09","Mar-10","Jun-10","Sep-10","Dec-10","Mar-11","Jun-11","Sep-11","Dec-11","Mar-12","Jun-12","Sep-12","Dec-12","Mar-13","Jun-13","Sep-13","Dec-13","Mar-14","Jun-14","Sep-14","Dec-14","Mar-15","Jun-15","Sep-15","Dec-15","Mar-16","Jun-16","Sep-16","Dec-16","Mar-17","Jun-17","Sep-17","Dec-17","Mar-18","Jun-18","Sep-18","Dec-18","Mar-19","Jun-19","Sep-19","Dec-19","Mar-20","Jun-20","Sep-20","Dec-20","Mar-21","Jun-21","Sep-21","Dec-21","Mar-22","Jun-22","Sep-22","Dec-22","Mar-23"],[[9.1999999999999993],[8.5],[8.8000000000000007],[9.5999999999999996],[9.4000000000000004],[9.3000000000000007],[8.3000000000000007],[7.2000000000000002],[6.7999999999999998],[7.2000000000000002],[7.2999999999999998],[7.5999999999999996],[6.7999999999999998],[7.5],[8],[7.7999999999999998],[8.6999999999999993],[7.7000000000000002],[6.0999999999999996],[6.9000000000000004],[4.7999999999999998],[3.2999999999999998],[3.1000000000000001],[1.5],[1.7],[1.2],[0.80000000000000004],[0.29999999999999999],[1.2],[1.8],[2.2000000000000002],[1.8],[1.5],[1.8],[2],[2.6000000000000001],[3.7000000000000002],[4.5],[5.0999999999999996],[5.0999999999999996],[3.7999999999999998],[3.1000000000000001],[2.1000000000000001],[1.5],[1.3999999999999999],[0.29999999999999999],[-0.40000000000000002],[-0.29999999999999999],[-0.10000000000000001],[0.69999999999999996],[1.3999999999999999],[1.5],[1.2],[1],[1.8],[1.8999999999999999],[2.7999999999999998],[3.1000000000000001],[6.0999999999999996],[5.7999999999999998],[6],[6.0999999999999996],[2.5],[3.1000000000000001],[3],[2.7999999999999998],[3.2000000000000002],[2.8999999999999999],[3.2999999999999998],[2.6000000000000001],[2.6000000000000001],[2.3999999999999999],[2],[2.5],[2.2999999999999998],[2.5],[2.3999999999999999],[2.5],[3.1000000000000001],[2.7999999999999998],[2.8999999999999999],[4],[4],[3.2999999999999998],[2.5],[2.1000000000000001],[1.8],[2.8999999999999999],[4.2999999999999998],[4.4000000000000004],[5],[3.7000000000000002],[2.3999999999999999],[1.3999999999999999],[1.2],[2.1000000000000001],[2.8999999999999999],[3.1000000000000001],[2.8999999999999999],[2.7999999999999998],[3.2999999999999998],[3.5],[3.3999999999999999],[3],[1.6000000000000001],[1.2],[2],[2.2000000000000002],[2.5],[2.3999999999999999],[2.2000000000000002],[2.7000000000000002],[2.8999999999999999],[3],[2.2999999999999998],[1.7],[1.3],[1.5],[1.5],[1.7],[1.3],[1],[1.3],[1.5],[2.1000000000000001],[1.8999999999999999],[1.8],[1.8999999999999999],[1.8999999999999999],[2.1000000000000001],[1.8999999999999999],[1.8],[1.3],[1.6000000000000001],[1.7],[1.8],[2.2000000000000002],[-0.29999999999999999],[0.69999999999999996],[0.90000000000000002],[1.1000000000000001],[3.7999999999999998],[3],[3.5],[5.0999999999999996],[6.0999999999999996],[7.2999999999999998],[7.7999999999999998],[7]],[[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[null],[0.59999999999999998],[1.2],[1.2],[2.6000000000000001],[3.5],[6.2000000000000002],[6.4000000000000004],[6.5],[5.5999999999999996],[2.1000000000000001],[2.1000000000000001],[1.8999999999999999],[2.2000000000000002],[3.2000000000000002],[3.2999999999999998],[3.7000000000000002],[3],[2.6000000000000001],[2.5],[2.5],[3.2999999999999998],[3.1000000000000001],[3.3999999999999999],[2.7000000000000002],[2.8999999999999999],[3.6000000000000001],[3.1000000000000001],[3.6000000000000001],[4.5],[4.5],[4.2999999999999998],[3.5],[3.1000000000000001],[2.7999999999999998],[3.5],[5],[5.7999999999999998],[6.2000000000000002],[4.5],[2.3999999999999999],[-0.80000000000000004],[-1.1000000000000001],[0.29999999999999999],[2],[4.5],[4.7000000000000002],[4.5],[4.7999999999999998],[4.5],[3.8999999999999999],[3.2999999999999998],[1.2],[0.69999999999999996],[0.69999999999999996],[0.69999999999999996],[1],[0.69999999999999996],[0.90000000000000002],[1.3],[2.1000000000000001],[2.2999999999999998],[1.8999999999999999],[1.6000000000000001],[0.90000000000000002],[0.90000000000000002],[0.69999999999999996],[1.1000000000000001],[1.1000000000000001],[1],[1.2],[1],[1.5],[1.3],[1.5],[2],[2],[2.2999999999999998],[2],[1.8999999999999999],[1.3999999999999999],[1.6000000000000001],[1.3],[1],[1.1000000000000001],[-2.1000000000000001],[-0.90000000000000002],[-0.5],[0],[3.2999999999999998],[2.6000000000000001],[2.6000000000000001],[3.7999999999999998],[4.5999999999999996],[6.7000000000000002],[9.3000000000000007],[9.5999999999999996]]]

[]

[{"value":"0","axis_id":"0","axis_title":"","axis_units":"","tooltip_units":"","table_units":"","axis_min":null,"axis_max":null,"tick_interval":"4","precision":"-1","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

[{"value":"0","axis_id":"0","axis_title":"Percentage Change (%)","axis_units":"","tooltip_units":"(%)","table_units":"(%)","axis_min":null,"axis_max":null,"tick_interval":null,"precision":"-1","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

Quarterly living costs

Compared to the previous quarter, living costs for all household types increased between 1.3 and 2.2 per cent in the March 2023 quarter. All household types, except self-funded retirees, experienced a quarterly increase in living costs higher than the CPI (+1.4 per cent).

“Higher prices for health, housing, food and interest charges contributed to increased living costs for all household types,” Ms Marquardt said.

Main quarterly contributors to cost of living increases (per cent increase)
Employee	Mortgage interest charges (11.0 per cent) Food (1.5 per cent)
Age pensioner	Health (7.8 per cent) Housing (3.0 per cent)
Other government transfer recipient	Housing (2.9 per cent) Health (9.8 per cent)
Self-funded retiree	Health (4.3 per cent) Food (1.6 per cent)
Pensioner and beneficiary (PBLCI)	Health (8.6 per cent) Housing (2.8 per cent)

“Self-funded retirees recorded the smallest quarterly increase (+1.3 per cent) of all household types. These households have a larger proportion of their spending on international holiday travel and accommodation than the other household types. As international holiday travel and accommodation prices fell in many destinations due to the start of the off-peak season, this had a bigger impact on self-funded retirees,” Ms Marquardt said.

Media notes

Last week’s CPI publication showed price changes for all households living in capital cities. Today’s release of the Living Cost Indexes shows how those price changes impact the living costs of different types of households.
The Living Cost Indexes also show how changes in mortgage interest charges, rather than the cost of a new dwelling, are impacting household living costs.
The Consumer Price Index and Selected Living Cost Indexes are measured similarly, however, different methods are used to measure owner-occupied housing. This article explains how owner-occupied housing is measured in the CPI and SLCIs: The measurement of housing in the Consumer Price Index (CPI) and Selected Living Cost Indexes (SLCIs).
Households are categorised by their main source of income. A detailed definition of the different household types can be found in the Selected Living Cost Indexes, Australia methodology.
When reporting ABS data you must attribute the Australian Bureau of Statistics (or the ABS) as the source.
For media requests and interviews, contact the ABS Media Team via media@abs.gov.au (8.30am-5pm Mon-Fri).
Subscribe to our media release notification service to get notified of ABS media releases or publications upon their release.

APA

Citation

Employees’ annual living costs highest on record

APA

Citation

Quarterly living costs

Media notes

Provide feedback