• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 1 of 1
  1. #1
    Join Date
    Sep 2003
    High up above and deep down under

    Default The joys of living in Australia - Weekly living costs up $100

    Weekly living costs up $100

    Jessica Wright

    January 2, 2011
    FAMILIES face cost-of-living increases that could drain the weekly budget by up to $100 this year.
    New data shows Australians are being levelled with record expenses for basic services and Sydney residents are some of the hardest hit in the country.
    After floods that have wiped out crops in Queensland and NSW, fruit and vegetable prices are predicted to rise by up to 50 per cent.
    Any hope the strong Australian dollar would shield motorists from increases in fuel prices have been dashed - global oil prices are tipped to hit record highs.
    This year's price increases will compound the cost pressures already inflicted on households.
    The price rises for local commodities such as wheat, sugar and coal as a result of the floods come on the back of a 26 per cent increase in global prices for grain and rice from June to November last year.
    AMP chief economist Shane Oliver said: ''There is no doubt there will be upward pressure on food - bread, fruit and vegetables. It is a bit like a few years ago when we saw a cyclone and what happened to bananas. Some things will reach up to 50 per cent extra, others not as high but there will be definite rises. There are entire crops underwater and this is going to have a big effect.''
    Consumers are reeling from utility increases in the past three years. Electricity prices rose by 45 per cent on average in Sydney; gas by 21 per cent; and water by 43 per cent, according to the Australian Bureau of Statistics.
    The bureau's projections for utility prices paint an equally severe scenario of escalating costs.
    The trio of utility costs alone represents an extra yearly burden of about $1000 - or $20 a week - for an average household of four, while grocery bills are set to rise on average by $50 a week, based on a weekly bill of $150.
    The figures sit in contrast to inflation, which rose over the same period by just 8 per cent.
    Annette Beacher, the head of Asia-Pacific Research at TD Securities, said inflationary pressures were increasing and could translate into another interest rate rise in the first quarter of next year.
    ''We're starting to see [a] shift into more price rises than price falls,'' Ms Beacher said.
    Cost-of-living pressures were the headline concern for consumers in a survey conducted by Mortgage Choice, eclipsing the prospect of rising interest rates.
    In the survey, 27 per cent of respondents put the cost of living as their greatest concern, compared with 17 per cent of respondents a year earlier.
    Housing affordability has taken another dive, with industry figures showing the largest annual decrease in a decade.
    A report by the Real Estate Institute of Australia showed the proportion of income required to meet loan repayments increased 5.8 per cent to 34.8 per cent over last year, a 10-year high.
    Additionally, the amount of rent people are paying has increased by 18.6 per cent in Sydney over three years, above the national average.
    The Bureau of Statistics also identified health costs, communications services and petrol prices as having risen sharply over the year.
    Fueltrac managing director Chris Kable said that along with oil price rises, motorists were carrying the extra costs of supermarket loyalty schemes, which he believed were artificially inflating prices.
    Cost-of-living increases are a red-button issue for politicians. Prime Minister Julia Gillard and Opposition Leader Tony Abbott have declared they will focus on helping ease pressures on household budgets.
    But travellers have a lot to smile about. The dollar is set to continue its record-breaking run against the greenback and the euro.
    The dollar hit US102.39 on Friday, the highest level since the currency was floated in 1983. But its strength has delivered a hit to the tourism and export sectors.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Living with your tenants?
    By Fenix in forum Property Investment (NZ)
    Replies: 3
    Last Post: 07-04-2016, 02:30 PM
  2. Cost of living to increase in the New Year - Australia
    By muppet in forum World in General
    Replies: 2
    Last Post: 10-02-2012, 10:21 PM
  3. The joys of buying in Australia
    By muppet in forum Property Investment (Oz)
    Replies: 0
    Last Post: 28-03-2011, 12:33 PM
  4. My Living Will
    By PC in forum Forum Funnies
    Replies: 0
    Last Post: 03-03-2011, 07:49 AM
  5. My Living Will
    By Perry in forum Forum Funnies
    Replies: 1
    Last Post: 22-11-2009, 11:31 PM
  6. Living Off Equity
    By Sunshine Surfer in forum Property Investment (NZ)
    Replies: 14
    Last Post: 24-10-2007, 10:49 AM
  7. There's someone living in my garage!
    By drelly in forum Property Investment (NZ)
    Replies: 18
    Last Post: 20-04-2006, 08:09 PM
  8. Living in UK
    By AustinWong in forum General (NZ)
    Replies: 11
    Last Post: 17-04-2006, 11:13 PM
  9. Soosh's NZ Stakeout
    By Sooshie in forum General (NZ)
    Replies: 1
    Last Post: 03-12-2003, 04:06 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts