Cost of Living: The Good, the Bad and the Ugly Price Increases in the Last Decade

The South Australian Council of Social Service today released its Cost of Living Update for the December Quarter 2015, including a snapshot of which prices had gone up most and which had gone up least in South Australia over the last ten years.

The best products were “audio, visual and computing goods and services” whose prices went down by 49% over the last decade (although usage and expenditure may have increased). The “ugliest” commodities, that is, those whose prices went up by more than double the general inflation rate included tobacco, gas, water, property rates, education and medical services. Electricity prices were 8^th on the “ugly” list. (See below).

SACOSS Executive Director, Ross Womersley said,

“There were a few surprises in the list, but the most important thing to realise is that these price increases do not affect everyone equally. That is particularly the case with utilities, and in fact many of the “uglies”, whose price increases impact more on low income households because they spend proportionately more on those goods and services.”

“In fact, our report shows that over the last ten years, the cost of living for households relying on income support payments has gone up by more than the general inflation rate.

As a result, a single person on Newstart supporting two children is $10-$16 a week worse off in real terms than a decade ago.”

“By contrast, wage and salary earner households also faced cost of living pressures, but with some respite in recent years their purchasing power is about the same as it was a decade ago.”

“This is another blow for households living on hopelessly inadequate support payments. It means they are going backwards both in their own household budgets and in comparison with the rest of the population.”

“We are renewing our call for the Federal government to increase the level of Newstart, Youth Allowance and the other base level benefits.

Download Cost of Living Update No. 25

THE GOOD
(Price increase less than half of CPI All Groups)	% Increase
Audio, visual and computing equip & services	-49.4
Garments	-12.9
Household textiles	-11.3
Footwear	-9.5
Household appliances, utensils and tools	-5.7
Communication	-1.6
Furniture and furnishings	2.4
Non-durable household products	6.7
Dairy and related products	13.9

THE BAD
(Price Increase 1/3 more than CPI All Groups)	% Increase
Tobacco	150.2
Utilities	88.9
Medical, dental and hospital services	75.9
Education	66.4
Other Housing (maintenance, repairs, rates)	44.6
Domestic and household services	45.0
Rents	39.9
Urban Transport Fares	39.8

THE UGLY
(Price Increase more than double CPI All Groups)	% Increase
Tobacco	150.2
Gas and other household fuels	111.3
Water and Sewerage	95.0
Property rates and charges	81.5
Secondary education	80.5
Pre-school and primary education	79.8
Medical and hospital services	79.1
Electricity	77.9
Other household services[1]	62.7
Other motor vehicle services	58.8