As cost-of-living pressures mount, Australian spending habits are continuing to evolve to face rising costs. However, with a 3.6% increase in essential spending reported nationally, Australians are increasing having to reallocate their budgets to cover rising costs of utilities, insurance, and supermarket spending.

In fact, consumers are clocking up an average of $1,472 per month on essentials, led by increased spend on insurance (+8 per cent), utilities (+6 per cent), pharmacies (+6 per cent) and supermarkets (+5 per cent).

The report has also highlighted a generational spending divide, with Aussies aged 25-29 feeling the largest cost of living pressures, pulling back on spending across essential (-3.1%) and discretionary (-3.8%) categories – the only age group to do so. Comparatively, Aussies over 65 have increased spending across essentials and discretionary items, with insurance and travel witnessing the highest growth in each category.

Clinton is joined by Wade Tubman, Head of Innovation and Analytics at CommBank iQ, to discuss the changes observed in Australians’ spending habits and his insights into how Aussies are dealing with cost of living pressures.

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