Rising Cost of Living Hits Australian Renters in their Early 30s Hardest
A new report by CommBank iQ on changes in spending behaviour in response to inflation, interest rate rises and rent increases, shows that Australians CommBank iQ, a joint venture between Commonwealth Bank of Australia and data science and artificial intelligence company Quantium, has released a report showing the rising cost of living in Australia. The report shows that discretionary expenditure remains elevated post-Covid, while spending on essential items is barely growing in line with inflation. People are being thrifty in areas of everyday expenditure to prioritise on experiences, with travel and accommodation spending up 39 per cent in January-March on the same period last year. Age group spending has increased by 7.7 per cent, with older Australians increasing their expenditure while younger customers are cutting back. Australians aged 25-29 show the largest reduction in expenditure, while 18-24 year olds have sustained their spending in real terms.
Pubblicato : 2 anni fa di Mirage News in Finance
CommBank iQ is a joint venture between Commonwealth Bank of Australia and data science and artificial intelligence company Quantium, which uses aggregated and de-identified payments data from 7 million CBA customers – Australia’s largest consumer payments data set – to track spending trends.
The Cost of Living Insights Report shows discretionary expenditure remains elevated post-Covid, while spending on essential items is barely growing in line with inflation. People are being thrifty in areas of everyday expenditure to prioritise on experiences, with travel and accommodation spending up 39 per cent in January-March on the same period last year.
“Putting our expenditure under the microscope shows we’re responding to the increased cost of living in diverse and sometimes unexpected ways,” comments the report’s author CommBank iQ Head of Innovation and Analytics Wade Tubman. “What we’re seeing is a continued Covid rebound effect, with consumers catching up on the experiences that they missed out on during the pandemic. It seems counter-intuitive that at a time of increased cost of living pressures, consumers are choosing to boost their discretionary spending.”
The report reveals a sharp divide in spending patterns according to age group, with older Australians increasing their expenditure while younger customers are cutting back. Annual spending by those aged over 35 has increased by 7.7 per cent, almost double the 3.4 per cent increase in spending by those under 35.
Australians aged 25-29 show the largest reduction in expenditure, while 18-24 year olds have sustained their spending in real terms with many still living with their parents. Young people are choosing to go out less, although their average spend on these occasions has increased.
Temi: Inflation, Australia