1. INTRODUCTION

“Wages aren’t keeping up, bills are going up, and ordinary Australians are being squeezed harder every day,” Sally McManus’s comment - an ACTU Secretary fully capture the cost-of-living crisis in Australia. Peter Carnegie sharing on ABC’s Q+A program, as a single father striving to support his 2 sons after his wife death, is one of the most prevalent examples of this crisis. Based on the data visualizations on the customer price index recorded up to the March 2025 quarter, Peter’s story will gradually be unpacked and the Australian cost-of-living crisis will be comprehended more deeply.

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2. Consumer Price Index (CPI)

First of all, let’s understand what is Consumer Price Index.

The Consumer Price Index (CPI) tells the story of how everyday life is getting more expensive. It tracks the prices Australians pay for essentials — food, rent, electricity, healthcare, and more. When the CPI rises, it means families must stretch their budgets further just to maintain the same standard of living — a growing challenge as many households, like Peter’s, already struggle to keep up.

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3. THE CONTINOUS RISE OF INFLATION RATE

Figure 1 illustrates the quarterly changes in the Consumer Price Index (CPI) from March 2016 to March 2025, highlighting the rising cost of living experienced by Australians over the years. The red points represent CPI changes each quarter, while the black dashed line shows the overall trend.

The CPI trend reveals a generally upward movement, indicating growing inflation pressures. While the pattern fluctuates, there is a clear long-term increase—especially noticeable from 2020 onward. For instance, March 2016 recorded a deflation of -0.2%, offering some relief at the time. However, by March 2025, inflation surged to 0.9%, underscoring how quickly prices for everyday goods and services have climbed.

This persistent rise in CPI reflects the real struggles faced by households like Peter’s. The inflationary trend seen in the graph mirrors the growing burden of essential expenses, making it harder for working-class families to maintain financial stability.

4. PETER’S STRUGGLE IN TERMS OF HOUSING COST PREVEAL THE COMMON ISSUE OF AUSTRALIANS

Peter’s first stuggle is housing stress while raising two sons on a modest income. Despite help from his parents — who cover some household bills and waive the rent — Peter still faces relentless struggle.

Figure 2 demonstrates the quarterly percentage change in rent from March 2016 to March 2025, compared to the previous quarter. Between 2016 and early 2020, rent levels remained relatively stable. However, from 2020 onward, a clear upward shift is observed.

The trend line displays a consistent post-2020 surge in rental costs, signaling increasing pressure on household budgets. If the trend continues, rents are likely to keep increasing beyond March 2025, further worsening the financial struggle for many Australians—especially those already living on tight incomes.

5. THE BURDEN ON EDUCATION EXPENSE

The cost for education could possibly another struggle for households simmilar to Peter. Peter’s eldest son, now 22, had to leave university to care for his mother during her illness. Today, he looks after his younger brother but struggles to find a path back to education or employment — trapped by limited support services and few viable options.

Figure 3 compares annual education inflation between March 2024 and March 2025. The chart reveals that education-related expenses rose from approximately 5.2% in March 2024 to around 5.8% in March 2025.

This continued upward trend highlights the rising financial burden on households, particularly those having children.

As education inflation accelerates, it adds another layer of strain to the overall cost of living, making it increasingly difficult for families to manage essential expenses.

6. THE RISING TREND OF ELECTRICITY EXPENSE AND THE BURDEN FOR AUSTRALIAN HOUSEHOLDS (MAR 2016 - MAR 2025)

Each week, Peter spends $300–$400 just to cover basic essentials like utilities and groceries. With energy prices climbing and inflation driving up everyday expenses, unexpected costs leave him with almost no financial safety net. The next contributor to the Australian cost-of-living crisis is electricity expenses.

Figure 4 shows changes in the government electricity rebates index from March 2016 to December 2017 — reflecting the level of government support for household electricity costs.

Between March 2016 and September 2017, the index declined significantly, indicating that government support helped reduce out-of-pocket electricity expenses for households during this period.

However, from September 2017 onwards, the index began to rise again, suggesting a reduction in government assistance and a corresponding increase in household electricity costs.

In the context of the current cost of living crisis, this shift has left many vulnerable families with less protection against rising utility expenses — further straining already tight household budgets.

7. THE RISING TREND OF GROCERY’S COST WORSEN AUSTRALIAN HOUSEHOLDS’ SITUATION

Figure 5 shows the grocery categories’ annual inflation per quarter.

Between March 2024 and March 2025, overall grocery inflation showed mixed trends. While inflation in Food and non-alcoholic beverages slightly decreased, both Meat and seafood and Fruit and vegetables experienced notable shifts — moving from deflation (negative inflation) in Mar-24 to positive inflation in Mar-25.

This reversal means that essential fresh food categories, which had provided some cost relief in Mar-24, have now become more expensive — adding further strain to household grocery budgets amid the ongoing cost-of-living crisis.

8. CONCLUSION

Peter’s story is not an isolated case — it is a window into a growing national struggle.

The rising cost of housing, energy, education, and everyday essentials — revealed clearly in the data — is steadily eroding the financial security of Australian families.

If this trend continues unchecked, more households will face impossible choices: between heating and groceries, between education and debt, between survival and dignity.

Behind every data point lies a human story — like Peter’s — and it is time the government should listen, remember, and act.

REFERENCES

Australian Bureau of Statistics. (2024, April 24). Consumer price index, Australia: Latest release. https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release