Living costs rise across all household types, ABS data shows

LIVING costs rose for all household types in the year to December, according to new data from the Australian Bureau of Statistics.

The latest Selected Living Cost Indexes show annual increases ranging from 2.3 per cent to 4.2 per cent, depending on household type.

ABS head of prices statistics Michelle Marquardt said housing, food and non-alcoholic beverages, and recreation and culture were the main contributors to rising costs.

Households relying on government payments recorded the largest annual increases, driven largely by higher electricity costs after state government energy rebates were used up.

Employee households experienced the smallest rise in living costs over the year, increasing by 2.3 per cent.

The ABS said falling mortgage interest charges helped offset other cost pressures for wage and salary earners.

“Mortgage interest charges fell 6.4 per cent in the twelve months to the December 2025 quarter,” Marquardt said.

Living cost increases slowed in the December quarter compared with the previous quarter, with lower electricity and health costs providing some relief.

The ABS said health costs fell across all household types during the quarter, partly due to more households reaching the Pharmaceutical Benefits Scheme safety net and expanded bulk billing incentives.

The data measures changes in the cost of living for different household types, rather than overall price movements captured by the Consumer Price Index.