Assessment 3 - Storytelling with Open Data : Cost of Living Crisis in Australia
Varsha Vinod Gondhkar - s4024227
1.Introduction
- Over the past few years, the cost of living in Australia has become impossible to ignore.
- Rent, bills, and public transport fares have all gone up, making it harder for people to manage their daily expenses. Even grocery prices are higher than ever, adding to the struggle of keeping up with the cost of living.
- Between 2020 and 2024, inflation has steadily reshaped the way Australians live.
- Using the Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS), this presentation dives into the reality behind the rising numbers and what it means for the public.
Reference:
Australian Bureau of Statistics. (2025). Monthly Consumer Price
Index Indicator. https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/monthly-consumer-price-index-indicator/apr-2025
2. The CPI Data
- We used the Consumer Price Index (CPI) to
understand rising living costs.
- CPI shows how the prices of everyday items go up or down over
time.
- It’s shared by the Australian Bureau of Statistics (ABS) every few
months.
- In March 2025, prices went up 0.9%
for the quarter, and 2.4% over the year.
- The biggest price increases were in:
- Education (+5.2%) – school and learning costs
- Housing (+1.7%) – rent and home expenses
- Food and drinks (+1.2%) – groceries and meals
- Education (+5.2%) – school and learning costs
- These rising prices affect how people live, budget, and plan their day-to-day lives.
3. CPI Trends — Electricity, Housing, and Transport (2022–2025)
- The line graph shows average monthly CPI for Electricity,
Housing, and Transport from mid-2022 to mid-2025.
- Electricity (Red Line) tells a dramatic story.Prices dropped sharply from mid-2023 to late 2024, possibly due to government support or changes in the energy market. But by late 2024, prices began to climb again, showing a strong rebound.
- Housing (Green Line) was more predictable. It followed a steady upward trend, with only small seasonal dips. This reflects the ongoing rise in rent and shelter-related costs — slow but consistent pressure on household budgets.
- Transport (Blue Line) was the most volatile. Sharp peaks in early and mid-2023 suggest sensitivity to global fuel prices and supply chain issues — reminders of how connected we are to global events.
- Key Insight: Different CPI components react to different economic factors, showing varied inflation impacts across categories.
4. Grocery Costs over time
- The line chart shows how the cost of food and non-alcoholic drinks has changed from mid-2022 to mid-2025. It starts around 63.2 in mid-2022 and slowly rises to nearly 68.0 by mid-2025.This means groceries have become more expensive over time.There were small drops in prices around late 2022 and mid-2023,but overall, the trend keeps going up.
- In early 2024, there was a sharper jump possibly due to supply chain problems, weather events, or higher farming and transport costs.
- This rising trend shows that food inflation hasn’t gone away.
It continues to put pressure on households especially for families who already spend a big part of their income on groceries. - Even if other prices settle down, food costs seem to keep climbing.
5. Housing Trend
- This chart shows how housing costs have changed between August 2022 and May 2025. It starts at around 61.8 and slowly climbs to about 65.0.That means rent, home maintenance, and other housing costs have been going up bit by bit, over the years.
- From late 2022 to early 2024, we see a steady rise. This suggests that people were paying more for their homes each month, even if the changes weren’t dramatic.
- Around mid-2024, there’s a small dip.This might have happened because of rental discounts, seasonal effects, or short-term relief programs. But after that, housing costs start rising again, going back to where they were before.
- Housing prices don’t change wildly like electricity or fuel but they keep climbing slowly, and that adds up over time. This is a big deal, especially for renters and people with low incomes. Even small, steady increases can make it harder to afford a place to live.
6. Tracking Transport Costs
- This line chart shows how transport costs have changed from
August 2022 to May 2025. It includes things like fuel
prices, car repairs, and public transport fares. This starts around
68.5 in mid-2022. Soon after, prices dropped sharply —
but then spiked up to over 71 by mid-2023.
- The line keeps going up and down, showing that transport costs have been quite unstable during this time. In late 2024, there was another big drop, falling close to 62, but a small recovery followed in early 2025.
- Transport costs react quickly to things like: Global fuel prices, delays in car parts or shipping, Government policies, like taxes or fuel discounts.
- While categories like housing and food rise more slowly, transport prices are much more unpredictable, which can be tough for people who drive a lot or rely on public transport every day.
7. Electricity Prices Over Time
- This line chart shows how electricity costs changed for households from August 2022 to May 2025. In 2022, the index was around 50, and it slowly rose to over 60 by early 2024, telling us that power bills were getting more expensive.
- Around mid to late 2024, electricity prices dropped sharply, falling to below 30. This big dip might be due to government rebates, price caps, or lower demand during that time. After that, in early 2025, prices began rising again, showing a partial comeback in electricity costs.
- Electricity prices don’t just follow normal inflation, they’re also affected by things like: Government support programs,big changes in the energy market, seasonal use (like heating in winter or cooling in summer). These ups and downs make it harder for households to plan their budgets especially when help from the government is only temporary.
8. How Are Price Changes Connected?
- Electricity & Housing: 0.56 - There’s a moderate link when housing costs go up, electricity prices often rise too. Both are essential and can be influenced by similar factors, like infrastructure and demand.
- Transport & Electricity: 0.55 - Another strong connection because both rely heavily on energy and fuel when oil prices change, both can be affected.
- Food & Transport: –0.46 - This is a negative relationship.When fuel prices go up, food prices don’t always follow. In fact, food might become cheaper or stay the same, showing how food is impacted by different forces like supply chains or harvest seasons.
- Housing & Food: 0.33 - These two have a weak connection.They both slowly add to the cost of living, but they don’t move in sync.
- Not all costs go up together. Some things like fuel and electricity,
move hand in hand.
Others, like food, follow their own path. Understanding these links helps us see why inflation feels different for everyone, depending on what they spend the most on.
9. Summary
- This chart compares monthly price trends for four key living expenses from 2022 to 2025: Electricity, Food, Housing, and Transport. Each category tells its own story.
- Electricity: Prices went up steadily until early 2024, then suddenly dropped.This big dip likely came from government help, like energy rebates. But by 2025, prices started rising again possibly because the support ended.
- Food and Non-Alcoholic Beverages: Grocery prices just kept going up slowly and steadily. There weren’t any big drops, which shows constant pressure on food budgets.This affects most households, especially those with tight incomes.
- Housing: Housing costs also increased over time, but more gradually. There were small seasonal dips, but the overall trend was upward.This points to ongoing issues with rent and housing affordability.
- Transport: Transport costs were all over the place with sharp ups and downs. These swings are often linked to fuel prices or supply problems.It was the most unpredictable category in the chart.
- Not all inflation feels the same. Food and housing rise slowly but steadily, creating long-term stress. Electricity and transport can change suddenly, making household budgets harder to manage. It all depends on what people spend most on and that’s why inflation hits everyone a little differently.