Statewide spending hike continues
By Holly McGuinness
Spending in Victoria has increased for the 16th consecutive month according to the Australian Bureau of Statistics (ABS).
Compared to the same period last year, the state recorded an 11.8% increase in its expenditure in June, with the largest increases recorded in transport (+29.4%), clothing and footwear (+23.2%) and leisure and culture (+23.0%).
ABS head of macroeconomic statistics Jacqui Vita said the figures stem from steady declines in total household spending from March 2020 to February 2021 as COVID-19 responses were tested across the country.
“The spending categories most affected by COVID-19 responses (transportation, hotels, cafes and restaurants, clothing and footwear) are now back to pre-pandemic levels.” Mrs. Vita said.
Keilor-based senior Innate Wealth adviser Luke Eres said he was not surprised by the latest data.
However, he warned that rampant inflation, rising petrol prices, flooding in New South Wales and Queensland which affected the supply and price of fresh produce and rising food rates interest are all factors that contribute to household fiscal stress.
“It was actually the perfect storm and the reality is, for a lot of people where we were six or nine months ago, it’s relative,” he said.
“Our mortgage payments were significantly lower, our grocery costs were significantly lower, and our transportation costs were significantly lower. Six months later, it’s total chaos.
Mr Eres said many of his customers were worried about the future of their children if these economic conditions continued, but said he expects a reprieve in the near future as chains of supplies are improving.
His best advice for anyone with financial worries is to spend less than you earn.
“Get a very clear understanding between what is a need and what is wanted…if you can strike the right balance, you’re on the right track,” Eres said.