As the cost of living continues to rise across Australia, many households feel the squeeze more than ever. From soaring energy bills to increased grocery prices, Australians are making tough decisions about where to cut back.
Yet, despite these challenges, one indulgence remains surprisingly resilient. While many Australians are tightening their belts and watching every dollar, this expense seems immune to budget cuts.
According to the latest data from the Australian Bureau of Statistics, overall household spending barely budged in April, increasing by just 0.1 per cent.
When you strip out services and look at goods alone, spending dropped by 1.2 per cent. It’s clear that, after years of high inflation and relentless interest rate hikes, most of us are closely monitoring our wallets.
The proportion of income Australians are saving has climbed to 5.2 per cent—up from less than 4 per cent late last year. That’s a significant jump, showing how cautious we’ve become about our finances.
But there’s one area where we’re not holding back: alcohol.
A recent survey by Canstar Blue revealed that, on average, Australians are now spending $77 a month on wine—a 17 per cent increase from last year’s $66.
Beer drinkers are even more generous, with average monthly spending jumping a whopping 30 per cent, from $76 to $99.
To put that in perspective, the average price of beer only rose by 4.5 per cent over the past year. So, it’s not just inflation driving this trend—Australians genuinely choose to spend more on their favourite brews and bottles.
Eden Radford from Canstar Blue explained: ‘The Easter holidays helped pick up spending slightly for the month of April, but these latest figures show households chose to spend more on experiences than on discretionary items, like clothing and footwear.’
There are a few reasons why alcohol remains a priority for many Australians, even in tough times:
- Social connection: Sharing a drink is a time-honoured way to connect with friends and family. After years of lockdowns and social distancing, many want to compensate for lost time.
- Affordable luxury: Compared to a holiday or a fancy dinner out, a bottle of wine or a few beers is a relatively inexpensive treat that feels indulgent without breaking the bank.
- Home entertaining: With many people still wary of big nights out, home entertaining has become more popular. Stocking up on drinks for a night in is often cheaper than heading to the pub.
The fact that we’re still spending on alcohol, even as we cut back elsewhere, says a lot about our priorities—and our resilience. It also suggests that, while discretionary spending is down overall, pockets of the economy are still thriving.
Interestingly, the latest gross domestic product figures were weaker than expected, fuelling speculation that the Reserve Bank may cut interest rates again at its next meeting in July.
The market is now pricing in an 86 per cent chance of a rate cut, up from 81 per cent earlier in the week.
If rates do come down, we could see a little more breathing room in household budgets—but for now, it seems that many of us are content to save where we can and spend where it matters most.
Have you cut back on spending in other areas, but kept your wine or beer budget intact? Or have you found different ways to treat yourself without splashing out? Share your thoughts and tips in the comments below—let’s raise a glass to making wise choices.
Also read: Wine is still Australia’s most popular alcoholic drink – but many producers face an uncertain future
