“Food inflation in 2023 is likely to moderate,” said ANZ director of industry insights and agribusiness Michael Whitehead.
The latest quarterly inflation figure (to March 2023) is 7.0%, down from a high of 7.8% in the quarter to December 2022.
And the fertilisers it produces. Australia's National Food Supply Chain Alliance late last year forecast a further 8 per cent increase in local food prices over 2023.
COVID-19, climate change, and global supply chain issues have each driven up the cost of living in Australia.
Food price inflation has slowed slightly, according to the latest Consumer Price Index data from the Australian Bureau of Statistics. The data showed annual Australian food price inflation had slowed to eight per cent in the March 2023 quarter, from 9.2 per cent in the previous (December 2022) quarter .
After peaking at 6.2% in 2022, we expect inflation to fall to 3.5% for 2023. Over 2024 to 2027, we expect inflation to average just 1.8%—below the Fed's 2% target.
Global inflation will fall in 2023 and 2024 amid subpar economic growth. Global growth is projected to fall from an estimated 3.4 percent in 2022 to 2.9 percent in 2023, then rise to 3.1 percent in 2024.
Accelerated sea level rise and worsening coastal erosion. Increased weather intensity including Category 6 cyclones. More frequent and extreme bushfires. A greater chance of extreme flood events.
So why is the cost-of-living in Australia so high? One of the major reasons is inflation. A measure for household inflation, the Consumer Price Index, or CPI, increased by 2.1% in the first quarter of this year and 5.1% annually, according to data compiled by the Australian Bureau of Statistics (ABS).
Australia's outlook remains strong. The IMF forecasts the Australian economy will grow by 1.6% in 2023. This means Australia will again outperform other advanced economies, which are expected to grow by an average of just 1.3%. This follows Australia's solid 5.2% growth in 2021 and an estimated growth of 3.7% in 2022.
Prices across the country are set to slide by up to 10 per cent by the end of 2023, with Sydney, Brisbane and Canberra to be worst affected by the downturn. The latest PropTrack report predicted property values in Sydney, Brisbane and Canberra could slump by as much as 11 per cent as successive rate hikes bite.
Nationwide prices are expected to rise by approximately 2 per cent by the end of 2023. However, as the RBA potentially cuts interest rates before the end of 2023, demand pressures will contribute to a favourable environment for property prices.
The Australian Bureau of Statistics says the cost of groceries has increased by 8% year on year. That's in the aggregate. For anyone living on the margins, every increase in essentials means one less essential. Even for those who can afford some discretionary spend, the cost of essentials is biting.
There is no “one size fits all” plan for all but it is understood that an individual may need approximately $20,000 each year and an average family needs more than $50,000 a year to get by in Australia.
The average yearly salary in Australia is 90,800 AUD (USD 60,355). Let's go through a few key indicators of the average earnings in Australia so you can fully understand salary statistics and trends in the country.
Housing Costs In Australia
Housing in Australia is much more expensive than the UK. Gathering sufficient funds for a deposit before securing an Australian salary can challenging.
In the 12 months to March 2022, the Consumer Price Index (CPI) increased by 5.1%, the highest annual rise reported since the introduction of the GST in 2000. The cost of living can be analysed through various indexes produced by the Australian Bureau of Statistics (ABS).
The most expensive place for housing in Australia is Sydney. Including utilities, it's 48.51% higher than the cost of Adelaide, which is the least priciest capital city.
This Edition uses data from the September quarter of 2021. Note: The DIHA uses the 'median multiple' (a price-to-income ratio) to rate housing affordability. Adelaide, Brisbane, Melbourne, Perth, and Sydney were all classed as 'extremely unaffordable' with a combined median multiple rating of 8.0.
Australia enjoys one of the highest life expectancies in the world, at 83.0 years in 2020 for males and females at birth combined—ranked sixth among 38 member countries of the Organisation for Economic Co-operation and Development (OECD).
The report stated there was “very high confidence” that temperatures would rise across Australia throughout the century, with the average annual temperature set to be up to 1.3C warmer in 2030 compared with the average experienced between 1986 and 2005.
According to a new Climate Council report, by 2040, summertime temperatures on hot days in Sydney and Melbourne will be approaching 50 degrees, making summer sport as it is played at present untenable.
Economic experts are once again ringing the alarm bells over an imminent downturn. A US recession is coming, they say, in the second half of 2023. That time frame begins less than three weeks from now.
The dollar had an average inflation rate of 3.91% per year between 2019 and 2025, producing a cumulative price increase of 25.89%. The buying power of $12.55 in 2019 is predicted to be equivalent to $15.80 in 2025. This calculation is based on future inflation assumption of 3.00% per year.