Living costs set to soar in 2010

Households will have to pay up to $76 a week extra this year as living costs soar, a new study has found.

Analysis by the Daily Telegraph brought together increases to utilities bills, public transport fares, as well as predicted changes to school fees, health insurance and mortgage repayments. The newspaper found that by the end of the year, annualised costs could be $4,000 higher per household than in 2009.

Home loan repayments were shown to be the biggest driver of rising costs with interest rates widely forecast to increase by one percentage point this year. For a $300,000 mortgage that would mean about $44 added to weekly repayments, the Daily Telegraph said.

Among other costs, it was also noted that electricity bill increases of up to 12 per cent have been predicted by the Independent Pricing and Regulatory Tribunal.

The findings may encourage bank customers to compare savings accounts in order to get the most for their money. Last week, the Advertiser reported analysis by CommSec that found that personal wealth is currently growing at a record speed, with careful savers during the economic slump now reaping rewards.

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