Feeling slightly more on top of the cost of living? You’re not alone

Published on 18.10.2024

Australians’ concerns over the cost-of-living ease to lowest level in 18 months
Cutbacks made to spending have reduced for the first time in more than a year
Australians still saving around $300 each month, down from peak of $320 cutbacks mid-year

There are early signs Australians feel like they’re getting on top of cost of living concerns, which have eased to their lowest level in one and a half years.

With headline inflation continuing to moderate, Australians are feeling a little more optimistic about managing the cost of living and fewer are reporting higher prices for groceries, transport, eating out and rent.

New data from the latest quarterly NAB Consumer Sentiment survey, released today, reveals:

The cost of living remains the biggest driver of overall consumer stress (66.8pts), but concerns have eased 2.1pts over the past three months back to their lowest level since early 2022 when the cash rate began to rise.
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 latest figures showed more people felt like they were taking back control of the cost of living 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,” Ms 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.”