By Holly McGuinness
Spending across Victoria has risen for the 16th consecutive month according to the Australian Bureau of Statistics (ABS).
In comparison to the same time last year, the state saw an 11.8 per cent increase in spending during June with the most significant rises in transport (+29.4 per cent), clothing and footwear (+23.2 per cent) and recreation and culture (+23.0%).
ABS Head of macroeconomic statistics Jacqui Vita said the figures come off the back of consistent decreases in total household spending from March 2020 to February 2021, as responses to COVID-19 were experienced across the country.
“Spending categories most impacted from COVID-19 responses (transport, hotels, cafes and restaurants, and clothing and footwear) have now returned to pre-pandemic levels.” Ms Vita said.
Based in Keilor, Innate Wealth principal advisor Luke Eres said he was not surprised by the latest data.
However, he warned creeping inflation, rising petrol costs, floods in NSW and Queensland which have affected the supply and price of fresh produce and rising interest rates are all factors contributing to household budget stress.
“It’s actually been the perfect storm and the reality is, for a lot of people where we were six months or nine months ago, it’s relative,” he said,
“Our mortgage payments were sitting significantly lower, our grocery costs were significantly lower, and our transport costs were significantly lower. Six months later, it’s complete chaos.”
Mr Eres said many of his clients are concerned about the future of their children if these economic conditions continue, but said he does expect a reprieve in the near future as supply chains improve.
His top advice for anyone with financial concerns is to spend less than what you’re making.
“Get a real clear understanding between what is a need and what is want… if you can get that balance right then you’re well on the way,” Mr Eres said
