The Consumer Price Index (CPI) measures how inflation affects living expenses of consumers across Australia. This plot shows a clear and consistent upwards trend in CPI in Australia over the past 5 years, indicating a concerning rise in the cost of living.
One of the biggest issues in the cost of living crisis is housing. The idea of ever buying a house has become impossible for many people, and rent prices continue to rise, taking up the majority of people’s incomes.
Food prices also continue to rise, leaving more and more Australians unsure of their next meal.
The Wage Price Index (WPI) measures the price of labour, unaffected by the quality or quantity of work. The WPI has risen at a consistent rate, but it is not enough to keep up with increasing inflation rates.
The above plot shows the percentage change from the previous quarter of both the Wage and Consumer Price Indexes. While the WPI increases each quarter, the percentage increase of the CPI is consistently higher, showing how inflation is outpacing wage increases.