Housing costs, food prices, and rent have significantly increased in Australia over the past few years. Wages have grown more moderately, creating a widening disparity between costs of living and incomes. This is especially challenging for minimum wage workers and students. While inflation is impacting most Australians, young people and low-income demographics are having to forgo even basic necessities like food in order to afford housing. Policy changes are needed to address issues like housing supply and wage growth in order to improve living standards.

1. Anandh S (s3976934)
A story on Australia’s Cost of Living Crisis
MATH2270 - Data Visualisation | Assignment 3
Image by storyset on Freepik

2. State of housing
• The Housing Consumer Price Index (CPI) for Australia's 8 major cities has shown a remarkable and consistent upward trend. Over
the past few years, the cost of housing in these urban centers has been on a steady rise, especially since COVID-19.
Source: ABS 2023

3. Rental Inflation
• Currently, due to a shortage of vacancy, an influx of migrants and interest rate hikes, rentals have also inflated. For consumers, especially young
Australians, this has become extremely challenging as prices of basic essentials have also inflated significantly in the last few years.
Source: ABS 2023

4. Inflation of Food Prices
• The costs of food and groceries have increased significantly. Making it more difficult, especially for young Australians, to survive. It often comes
down to choosing what to sacrifice to continue having a roof over their heads.
Source: ABS 2023

5. Breakdown of how prices have increased
• Dairy products stand out with an astonishing 15% annual increase. Followed by other basic food products like bread,
cereals etc.
• This has resulted in people having to choose what they can and cannot have, even when it comes to essentials.
Source: ABS 2023

6. How wages have grown relative to CoL
Australia's Wage Price Index (WPI) has been facing a significant challenge in keeping pace with the rising costs
of housing and food. While wages have seen moderate growth, housing and food inflation have been outpacing
this increase, creating a growing disparity that affects the living standards of many Australians.
Source: ABS 2023

7. Living pay-check to pay-check…
• Minimum wage workers struggle the most with
regards to inflation. Young Australians and
students form a large part of this demographic.
• The average minimum wage for part time
workers, according to Glassdoor, is $23. And the
cost of grocery for a single person on average is
$155/week.
• The median rent in Melbourne has soared past
$400/week.
• A person would have to work at least 20
hours/week to be able to pay rent and be able to
afford a week or two’s worth of groceries.
Source: Glassdoor, Fair Work Ombudsman, Finder

8. Instability
• With inflation of this levels, it is clear to see why Australians have to forgo
essentials.
• In a study performed by University of Technology, Sydney, over 53% of the
individuals surveyed reported to have cut back on personal care expenses like
haircuts, labelling them a “luxury”.
• Over 45% of their regional respondents reported that they’d missed payment
deadlines at least once in the last 12 months.
• Many have reported that they’d made substantial cuts and there was nothing
else they could do further.

9. Conclusion
• Australia’s economic landscape, despite being in better shape than most
countries, demands attention and collaboration.
• General consensus suggests that limiting privatisation, halting interest rate
hikes, solving housing demand and boosting wage growth would help
improving the cost of living.
• As Australians face housing and food cost challenges, it’s high time for
implementing policy changes for a brighter future.

10. References
• Data: Consumer price index, australia, june quarter 2023 | australian bureau of statistics. (2023, July 26).
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release
• Data: Wage price index, australia, june 2023 | australian bureau of statistics. (2023, August 15).
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release
• Barely hanging on: The cost-of-living crisis in nsw. (n.d.). NCOSS - NSW Council of Social Service. Retrieved 24 October
2023, from https://www.ncoss.org.au/policy-advocacy/policy-research-publications/barely-hanging-on-the-cost-of-living-crisis-
in-nsw/
• Rachwani, M. (2023, September 2). Young Australians forgoing necessities as cost-of-living crisis deepens wealth divide. The
Guardian. https://www.theguardian.com/australia-news/2023/sep/03/cost-of-living-crisis-price-rises-increases
• Free Vector | Money stress concept illustration. (n.d.). Freepik. Retrieved 24 October 2023, from https://www.freepik.com/free-
vector/money-stress-concept-illustration_24717319.htm
• Bradney-George, A. (2020, May 19). Average cost of groceries per month—2022 | Finder. Finder.Com.Au.
https://www.finder.com.au/average-grocery-bill
• Australia: National hourly minimum wage 2023. (n.d.). Statista. Retrieved 24 October 2023, from
https://www.statista.com/statistics/1170500/australia-national-hourly-minimum-wage/