Cost‑of‑living pressures continue to weigh on Australians, with NAB’s latest Consumer Sentiment Survey showing households remain under sustained financial strain despite only modest easing in overall stress levels.
17 June 2026 | 3 min read
17 June 2026
- Cost of living remains the dominant source of financial stress for Australians.
- Household spending remains cautious, with savings redirected to essentials.
- Consumer stress eased slightly but remains above long-run averages.
Cost‑of‑living pressures continue to weigh on Australians, with NAB’s latest Consumer Sentiment Survey showing households remain under sustained financial strain despite only modest easing in overall stress levels.
NAB Head of Behavioural Economics Dean Pearson said the survey shows only limited improvement in how households are feeling.
“Consumer stress eased slightly in the June quarter, but the change points to only modest relief and overall pressure remains elevated,” Mr Pearson said.
“Cost of living is still the dominant source of stress for households, and it continues to be felt directly through everyday spending decisions and trade‑offs.”
Around eight in ten Australians reported higher living costs over the past three months, with grocery, utility and transport expenses remaining elevated and continuing to absorb a larger share of household budgets.
While some housing‑related costs eased, this has not translated into a broader sense of relief, as pressure across essential categories persists.
The impact is evident in household spending behaviour, with around three in four Australians reporting that higher living costs are affecting their lifestyle and prompting targeted adjustments to manage cash flow.
“Households are continuing to adjust spending, but those changes are increasingly focused on managing day‑to‑day expenses rather than supporting discretionary spending,” Mr Pearson said.
“Even where savings are being generated, most households are using that capacity to stabilise finances or rebuild buffers.”
Overall, the survey points to a consumer environment where pressure remains widespread and persistent, and where spending is likely to remain cautious as households prioritise essential costs and financial stability.
Read the full NAB Q2 Consumer Sentiment Report.
