Australians are doubling down on careful cut backs to save hundreds of dollars a month as cost-of-living expenses continue to bite.
Consumers are focused on “smarter spending”, with half of Australians spending less on eating out at restaurants and treats such as coffees and snacks, according to new NAB consumer sentiment data.
Almost half, 49 per cent, of people are cutting back on entertainment expenses, 46 per cent said they were taking less car journeys to save on petrol, and a respective 45 and 43 per cent said they were skipping out on spending on holidays and food delivery services.
Those who were cutting back were saving about $320 a month or more than $3,800 a year, NAB said.
The bank’s consumer stress index revealed concerns over the cost of living remained high for the third consecutive quarter, while consumers were less stressed about their job security, health, government policy and funding their retirement for the first time since late 2022.
Cost-of-living concerns are shared nationwide, as Australian consumers struggle under the weight of inflation, which remained steady at 3.4 per cent in February.
The Reserve Bank of Australia is not forecasting for inflation to return to its “target” level of between two and three per cent until 2025.
And consumers are feeling the bite, as households report experiencing “extreme” cost-of-living pressure, according to comparison site Finder.
Finder’s latest cost of living pressure gauge was 78 per cent — down from 83 per cent this time last year, but still in the “extreme range”.
In March 2021, that figure was only 47 per cent.
