We had negative inflation, but did your costs actually drop?

Inflation softened in the March quarter, with most experiencing negative inflation.

We had negative inflation, but did your costs actually drop?

Inflation continued to soften in the March quarter, with most tribes experiencing negative inflation.

Four tribes – the Affluent and Constrained Couples and Singles – saw negative inflation, while two – the Cash-Strapped Couples and Singles – had zero inflation.

Negative inflation does not necessarily mean that prices affecting you went down, but rather that prices on average went down. You actually may have experienced an increase in the costs of some goods you purchased in the March quarter.

The low inflation numbers were driven by falls in the cost of automotive fuel (-8.7 per cent) and both domestic (-3.8 per cent) and overseas (-2.1 per cent) holidays, travel and accommodation.

The Affluent tribes are the most likely to spend more on travel and so are more likely to have enjoyed the biggest falls in costs (couples -0.3 per cent and singles -0.2 per cent).

A cautionary point, however, is that while fuel costs went down compared with highs in the previous quarter, they were still expensive.

The spending categories that rose the most were vegetables (+7.7 per cent), secondary education (+4.2 per cent), motor vehicles (+2.4 per cent) and medical and hospital services (+1.3 per cent).

How the cost-of-living changes in the March quarter affected you will depend on how you spend your money. If you spend a big proportion of your budget on travel, you may have noticed an easing in costs; if you spend a big proportion on food, you would have noticed a tightening.

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    COMMENTS

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    Paddington
    21st Jul 2019
    1:01pm
    You still have $832.80 as a couple home owners weekly pension and it is not. It is just under $700 at the moment. I have pointed this out before.
    That puts us in the cash strapped line but not paying rent or receiving rent assistance.
    There is no mention of the rent assistance either.
    It is important to know what things cost but we need to be accurate with what we actually have as disposable income.
    People have different needs as well.
    I feel for the single pensioners especially ones without a home.
    Farside
    21st Jul 2019
    3:35pm
    The $832.80 in the above table is the total weekly expenditure for a constrained couple. There is no mention of the weekly pension.
    Paddington
    21st Jul 2019
    7:41pm
    Farside, it is in the heading. Couple homeowners on aged pension.
    Paddington
    21st Jul 2019
    7:50pm
    Farside, you need to make it fit under $700 because people have to do that. If it is saying we are in debt every week to the tune of $132 it is not very helpful.
    The food is about right and we do not drink luckily as it would not fit in our budget.
    I guess different people spend varying amounts on each of those items but in the end you have to live within your means.
    panos
    21st Jul 2019
    2:04pm
    It's a total stuff up..............according to this the couples pension just does not make the cut at all.........................

    Thank you all persuasions of govt, you have stuffed us completely
    Mac
    21st Jul 2019
    4:46pm
    No, my costs did not certainly drop. Everything just got more expensive - food, petrol, newspapers, and so on.
    Tricky
    21st Jul 2019
    5:40pm
    Fix the deeming rates and that will help the abused pensioners and part pensioners. They are currently being robbed by this LNP government!
    mogo51
    21st Jul 2019
    6:33pm
    As renters, we are in cash strapped are and costs are $36k+, well above pension payments. No wonder we are hungry and stressed.
    mogo51
    21st Jul 2019
    6:36pm
    Well what they 'adjusted' it to last week was a joke. Nowhere near 'faie' but then what is new?
    mogo51
    21st Jul 2019
    6:36pm
    Well what they 'adjusted' it to last week was a joke. Nowhere near 'faie' but then what is new?
    neil
    22nd Jul 2019
    1:49pm
    My transport costs are way beyond what is quoted, 'single home owner, constrained, on age pension.
    Neil.
    neil
    22nd Jul 2019
    1:49pm
    My transport costs are way beyond what is quoted, 'single home owner, constrained, on age pension.
    Neil.