Australia’s Cost-of-Living Crisis

Nahid Aktar

Slide 1: Introduction

  • Australia is facing a rising cost-of-living crisis.
  • Categories such as rent, groceries, and transport have shown significant increases.
  • In this story, we explore these trends using public CPI data from ABS.

Slide 2: Data Source

Slide 3: Data Preparation Process

  • 📂 The CPI dataset was downloaded from the ABS:
    CPI: Groups, Weighted Average of Eight Capital Cities
  • The Excel file included Series IDs split into:
    • 🗂️ Index: Category descriptions and Series IDs
    • 📊 Data1: CPI values by quarter
  • Selected categories:
    • 🏠 Rent (A2325981V)
    • 🥫 Food & Non-Alcoholic Beverages (A2325891R)
    • 🚗 Transport (A2326071A)
  • The final tidy dataset was saved as:
    cpi_tidy_rent_food_transport.csv
    This format simplifies loading and visualising the data in R.

Slide 4: CPI Trend – Rent

Slide 4.1: Observations – Rent

  • Rent costs have increased steadily since the early 2000s.
  • The slope becomes noticeably steeper after 2020, suggesting rapid growth during the post-COVID recovery.
  • Earlier periods (e.g., 1990s) show flat or fluctuating growth, likely influenced by housing market regulations or interest rate controls.
  • This reflects how housing affordability has become a growing concern for Australians.

Slide 5: CPI Trend – Food

Slide 5.1: Observations – Food

  • The CPI for food and non-alcoholic beverages shows consistent upward growth since 1970.
  • Sharp increases are noticeable around 2008 (global financial crisis) and 2020–2022, likely due to supply chain issues and inflation.
  • This trend indicates increasing pressure on household grocery budgets and cost-of-living concerns.

Slide 6: CPI Trend – Transport

Slide 6.1: Observations – Transport

  • Transport CPI is more volatile than rent or food.
  • Spikes and dips often align with fuel price shocks, oil crises, or policy changes (e.g., subsidies, taxes).
  • A significant spike appears after 2020, potentially due to fuel inflation during global economic recovery.
  • These fluctuations show how transport costs can quickly impact household expenses.

Slide 7: CPI Trend Comparison – Rent, Food, and Transport

Slide 8: Summary of Key Findings

  • 📊 CPI Trend Highlights
    • 📈 Rent: Steep post-2020 growth — housing pressure rising
    • 🥫 Food: Steady rise, sharper inflation after COVID-19
    • 🚗 Transport: Most volatile — tracks global fuel shocks
  • 📌 These categories show distinct patterns but all contribute to the rising cost of living.

Slide 9: Implications & Actions

  • ⚠️ Real-World Impact
    • 🧾 Everyday expenses are rising
    • 💸 Low- and middle-income households bear the brunt
    • 📉 The combined effect reduces purchasing power
  • 🛠️ What This Means
    • 🎯 Need for targeted policy (rent, fuel relief)
    • 🏛️ Continued monitoring of inflation-sensitive sectors
    • 🧠 Public data awareness supports budgeting decisions

Slide 10: References