Rising Living Costs Hit Employee Households, Mortgage Interest Charges Surge

Australia, Police

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Rising living costs continue to burden employee households in Australia, as revealed by the latest data from the Australian Bureau of Statistics (ABS).

In the March 2024 quarter, employee households, whose primary source of income is wages and salaries, experienced a 1.

This rise outpaced the overall Consumer Price Index (CPI), which saw a 1.

The significant factor impacting employee households’ living costs is the surge in mortgage interest charges.

With mortgage interest charges climbing by 7.

March 2024 quarter, these households faced even greater financial strain.

The increase in mortgage interest charges can be attributed to the rollover of expired fixed-rate mortgages to higher variable rates, as well as the 25 basis point increase in the Reserve Bank of Australia’s cash rate back in November 2023.

Furthermore, the ABS data revealed that employee households experienced the largest annual rise in living costs among all household types, with a 6.

Although this figure was lower than the peak of 9.

June 2023 quarter, it remains a significant burden for these households.

Mortgage interest charges, in particular, rose by a staggering 35.

June 2023.

The ABS also highlighted that rising living costs affected households reliant on government payments, such as age pensioners and other beneficiaries, with larger increases in healthcare expenses being a primary reason.

Additionally, higher food prices over the past 12 months have contributed to increased living costs across all household types.

As employee households continue to face mounting living expenses, it becomes crucial for policymakers and financial institutions to address the challenges they encounter.

Measures to alleviate the strain of rising mortgage interest charges and healthcare costs could help alleviate the burden on these households and promote financial well-being.

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