Australia’s Cost-of-Living Crisis: A CPI Story

A Data-Driven Analysis of CPI Trends from 2017 to 2025

Pamoda Madhubhashinee Prathapasinghe - S4012265

Introduction

  • The rising cost of living is a critical and growing concern for households across Australia.
  • Objective: To explore the impact of inflation in essential spending categories has changed in Australia from 2017 to 2025 using recent Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS).
  • As an Australian resident and a student, this topic is deeply relevant to personal experiences, constantly navigating the pressures of everyday expenses, housing, and education costs. This impact inspired me to delve into the data behind these trends.
  • Audience: The general public, policymakers, students, and educators interested in understanding economic stress trends.
  • Source: Australian Bureau of Statistics (ABS)
  • Dataset: Monthly CPI Indicator
  • Frequency: Monthly (September 2017 to April 2025)
  • Focus Categories: Food, Housing, Transport, and Education

All Groups CPI Over Time

  • The overall CPI shows a consistent upward trend.
  • Inflation has been steadily rising across all groups since 2017.
  • A notable acceleration is observed after the onset of the COVID-19 pandemic.

Food and Non-Alcoholic Beverages

  • Food prices experienced a sharp acceleration in growth after the COVID-19 pandemic began.
  • The index has continued its upward trajectory, showing persistent pressure on household food budgets.

Housing Costs

  • Housing costs show the steepest and most continuous increases among all categories.
  • A significant surge began post-2020, with several sharp jumps in the index.
  • This indicates substantial and ongoing pressure on housing affordability.

Transport Costs

  • Transport costs exhibit high volatility, especially around early 2020 and 2022.
  • A noticeable spike in 2022 is evident, primarily linked to global fuel price pressures.
  • Despite fluctuations, the overall trend points to higher transport expenses.

Education Costs

  • Education costs initially declined, then showed a gradual rise starting around 2021.
  • The increase appears more policy-linked, with distinct steps rather than continuous growth.
  • The overall impact is less volatile compared to other categories.

Monthly Percentage Change

  • Here it highlights the volatility and magnitude of monthly price shifts.
  • Housing and Transport show the largest monthly percentage spikes.
  • Food and Education generally exhibit smaller, but still significant, monthly changes.

Summary: April 2020 vs 2024 vs 2025

  • Housing and food prices have shown the steepest increases from 2020 to 2025.
  • Transport costs also show a significant rise, particularly between 2020 and 2024.
  • Education costs, while increasing, have seen a less pronounced overall shift in this period.

Conclusion

  • Australia’s cost of living shows a significant and persistent increase.
  • CPI has risen consistently across all major categories.
  • Housing and food are key drivers of inflationary pressure.
  • The sustained rise in essential prices places a substantial burden on households.
  • Understanding these CPI trends is vital for economic planning.

REFERENCES