Growth in cost of living highest for pensioners

Living costs

Pete Faulkner has a great post today (Cost of living pressures?) commenting on the new ABS Living Cost Indexes data, some of which I’ve charted above. Pete notes:

Today’s release of the Living Cost Indexes by the ABS should hopefully end any pre-election nonsense about “cost of living pressures” and how everyone is doing it so tough; although obviously it won’t…

…What is plainly clear is that the largest group (ie Employees) are experiencing inflationary pressures well below the headline CPI measure…

If there is a group that has been subjected to more price pressure than most it’s the pensioners; although even here cost of living increases have been below 3% for 6 quarters.

I suspect the living costs of pensioners have risen faster than those of other groups because of the greater share taken by electricity bills in pensioners’ budgets than those of employed people. Also, many employees would have experienced interest rate relief over 2012-13, reducing cost of living pressures for that group.

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