Australian households are stretching far beyond inflation and are spending much more on everyday spends according to research by fintech Frollo.
Inflation is currently sitting at 6.1 per cent, but Aussies are spending up to 19 per cent more on groceries, fuel and insurance than they did this time last year.
Frollo compared spending between May and July 2022 with the same period in 2021. If found the average household now spends 19 per cent more on fuel, up to$121 from $102.
This is despite the previous Liberal-National Coalition government cutting the fuel excise.
Grocery bills have also increased 18 per cent, jumping from $592 to $663.
Healthcare and medical expenses also rose substantially, with the average bills wracking up to be $232 up – 18 per cent from $197. Meanwhile, insurance rates are up 13 per cent from $282 to $318.
There is a distinct change in expenditure between generations. Baby Boomers are spending just 1.7 per cent more on groceries and 1.9 per cent more on fuel. On the other end of the spectrum, Generation X is spending an astonishing 34 per cent more on fuel, with the average spend sitting at $155 up from $115.
Monthly budgets for restaurants, pubs, cafes and takeaways are up 22 per cent to $2,048, up from $1,675.
Unlike fuel, Baby Boomers’ spending has risen the most when it comes to dining, with a jump of 35 per cent compared to Millennials at 11 per cent.
The soaring costs of lettuce made the news recently, and it’s not just leafy greens that are increasing in price.
“We have seen five times as many requests for pricing increases from suppliers and we expect this will continue as inflation continues to impact production costs,” said a spokesperson for Woolworths.Average prices for the fourth quarter of the 2022 financial year increased by 3.6 per cent compared to the previous year.
Due to rising costs, Woolworths has seen a few trends in spend. Customers are opting for alternate proteins than beef and choosing for frozen, rather than fresh, produce.
There are ways to lower your bills to combat inflation
To save money on groceries, customers can sign up for Woolworths Everyday Rewards, which could save them hundreds of dollars on their shopping every year.
Earn rewards points through regular grocery shops at the supermarket and through its partners like Ampol petrol. Points can then be converted into dollars off their next shop.
Coles offers a similar perk with its Flybuys program.
Woolworths also said that it offers specials on about 5,000 products every week across a range of categories. It also introduced a price freeze until the end of the year on over 200 commonly purchased products.
The retailer has also added 650 of its own branded products to its Low Price program. That includes flour, sugar, snack foods and other essential items.
Customers could also save up to 40 per cent on produce by buying from Woolworths’ Odd Bunch range of imperfect fruit and vegetables.
Ampol is offering users who fill up their car a discount of six cents per litre on their first three fills when they use FuelPay at participating locations.
If you spend more than $30 in store at Ampol and present your Everyday Rewards Card you’ll receive a four-cent-per-litre discount on fuel, plus one reward point for every dollar spent.