If you are feeling slightly less concerned about the cost of living these days, you’re not alone, new research shows.
Data from the latest quarterly NAB Consumer Sentiment survey has revealed many Australians feel like they’re getting on top of cost of living worries, which have eased to their lowest level in one and a half years.
With headline inflation continuing to moderate, it seems we are feeling a little more optimistic generally and fewer people are reporting higher prices for groceries, transport, eating out and rent.
The research found that while the cost of living remains the biggest driver of overall consumer stress, concerns have eased over the past three months back to their lowest level since early 2022 when the cash rate began to rise.
Other results include:
– Australians may have reached the extent of their spending cutbacks, with fewer choosing to reduce discretionary spending compared to three months ago.
– Fewer people are cutting back on spending at restaurants (53% now, compared to 57% mid-year), entertainment (45% now, 49% mid-year), and holiday plans (38% now, 43% mid-year).
– Despite making fewer cutbacks, Australians are continuing to make thoughtful spending decisions and are saving around $300 each month (down from $320 mid-year).
NAB Personal Everyday Banking executive Kylie Young said the figures showed more people felt like they were taking back control and fewer were reporting higher prices for everyday items.
“After more than a year of budgeting being the hot topic around the dinner table, we may be seeing the first signs Australians are feeling in control of their finances again”, Young said.
“On average, Australians are still saving around $300 each month or more than $3,600 a year, which has helped build a buffer to weather the economic challenges. But the biggest spending cuts may be behind us.
“This is also an early glimmer of good news for small businesses who have been doing it tough over the past two years as households chose to cut back and prioritise the essentials.
“Australians are proving resilient, they’re looking for smarter ways to save and spend and, even though it’s early days, this may be an indication of a more ‘normal’ 2025”, she concluded.
We hope you have enjoyed this article. It is our pleasure being your real estate agents in Brisbane.
If you would like any assistance or advice, please feel very welcome to get in touch with our Brisbane real estate agents, Brisbane property management team, or Brisbane buyers agents.
