Living costs edge ahead of CPI

The rising cost of living for working families, pensioners and those on welfare has overtaken the consumer price index, according to data published by the Bureau of Statistics.

Last year, working households costs were up 4.5 per cent, pensioners 3.1 per cent and those receiving welfare saw costs rise by 4.5 per cent while the CPI grew just 2.7 per cent.

Pensioners were hit particularity hard as a significant portion of their income goes on utility bills and fruit and vegetables, which increased dramatically in cost.

Four Reserve Bank (RBA) interest rate rises and one initiated by the banks pushed mortgage payments up by 30 per cent over the year which will hit working families very hard and suggest those looking for a mortgage should compare home loans in advance.

Other figures from the Bureau of Statistics show that home loans for established residences were up by 2.1 per cent in December, but loans for the purchase of new housing were down 10.1 percent, according to figure from the Australian Bureau of Statistics.

Mortgage rate increases are included in the living cost metrics but the Bureau of Statistics says this means the CPI is not an accurate picture of living costs.

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