The Essentials Strain: Can Australians Still Afford to Live and Eat?

Hong Jie Kok

2025-06-04

Why Does Everything Feel More Expensive?

Over the past few years, prices in Australia have gone up across housing, groceries, services, nearly everything.
Even though inflation is easing overall, key everyday costs remain high.

This story explores:
- How inflation in Australia has changed over time
- Why rent has stayed stubbornly high
- How grocery prices continue to strain household budgets

Goal:
To show how essential living costs especially rent and food, are shaping the Australian cost-of-living crisis in 2025.

Australia’s Inflation Over Time

This chart shows Australia’s annual and quarterly CPI from 2016 to 2025.
Between 2021 and 2022, inflation surged. The peak?
7.8% in December 2022 the highest in decades.

Why Did Prices Peak?

Why did this happen?

  • COVID disrupted supply chains
  • Energy prices surged
  • People started spending again after lockdowns

Inflation is going down… but are our lives really getting cheaper?

Rent Just Keeps Going Up

Even as inflation has eased, rent prices keep rising.

From 2019 to 2025, rents in Australia went up almost every year, especially after the pandemic.

Why?

  • Fewer rental properties available
  • Higher demand as people returned to cities
  • Rising building costs

Did you know?

  • Rent inflation was above 7% for most of 2023
  • In early 2025, it’s still around 5.5%, much higher than before the pandemic

Groceries Still Feel Expensive

Highlighting price changes in March 2025 across categories

We’ve been told “inflation is easing.”
But if your grocery bill still feels high, you’re not imagining it.

In Australia, food prices are still rising in 2025.

  • Meat and seafood: up 4.3%
  • Fruit and vegetables: up 6.6%
  • Dairy: down 0.2%, but still expensive after last year’s spike
  • Bread and cereal: up 2.7%
  • Drinks: up 3.6%

How This Feels in Real Life

Life is getting harder for everyone.
Behind the numbers are real people still feeling the pressure.

  • Families are spending more just to get the same groceries
  • Renters are staying longer in shared housing to save money
  • Some are cutting out meat or skipping meals
  • Others are dipping into savings or going into debt

“We’re spending more and getting less. It’s like we’re stuck.”
– Young renter, Melbourne

So What’s Next?

  • Current policies must do more to ease pressure on households
  • CPI reporting should highlight essentials like rent and food
  • More support is needed for Australians still struggling every day


Slowing inflation is good news —
but it doesn’t mean the crisis is over.

References

Australian Bureau of Statistics. (2025, March). Consumer price index, Australia. Australian Bureau of Statistics.
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release#data-downloads

LawBridge. (n.d.). Rental increase in Dubai. Retrieved June 5, 2025, from
https://lawbridge.ae/news/rental-increase-dubai/

PNGDesigner. (n.d.). Empty wallet PNG image. Retrieved June 5, 2025, from
https://www.pngdesigner.com/photo/2158/empty-wallet-png#google_vignette

The Nation. (2023, June 5). Retail automation is transforming grocery work. The Nation.
https://www.thenation.com/article/society/retail-grocery-automation-esl-kroger/

The Sydney Morning Herald. (2017, February 14). The one road rule drivers always get wrong. The Sydney Morning Herald.
https://www.smh.com.au/opinion/the-one-road-rule-drivers-always-get-wrong-20170214-gucuij.html