Widespread fear and worry has been revealed as 85 per cent of Australians consider the cost of living to be the number one issue in the country right now according to a new study from leading strategic insights consultancy Nature.
70 per cent of Australians say they have been negatively impacted by the rising cost of living and 83 per cent fear it will further impact their lifestyle. In response, they are taking drastic measures to cut their spending and save money, with 89 per cent shopping for more specials and promos, 84 per cent dining out less, and 77 per cent reducing alcohol purchases.
Other key findings show:
• 85 per cent of Australians are planning on or currently using less gas, electricity or hot water
• 64 per cent of Australians are putting their travel plans on hold
• 51 per cent of Australians are considering switching insurance policies and 46per cent are considering switching energy providers
• 79 per cent are planning on or currently switching to lower priced clothing or footwear brands
When it comes to non-essential spending, 89 per cent of Australians are planning to spend less, with the below categories in the crosshairs:
• Homewares and furniture (61 per cent)
• Sporting events and cultural experiences (61 per cent)
• Luxury items (58 per cent)
• Technology and electronics (55 per cent)
Nature consultant, Jacqui Dreher, said: “People are under a great amount of pressure from the rising cost of living, something they expect to keep rising in the next 12 months. “While the burden is heavy across all ages, the research shows it is heaviest for those who are middle-aged as they are more likely have children or other dependants as well as spend the most on groceries.
“People say they are eating out less, taking a packed lunch and entertaining at home, meaning there’s an opportunity for businesses to capitalise on these choices by dialling up the versatility of products and providing inspiration for how to best achieve savings,” Dreher said.
80 per cent of the people surveyed expect grocery prices to continue rising over the next 12 months, which is the biggest cause of stress, along with other essential items, bills, fuel and transport.
Nature consultant, Luke Crellin, said: “As the cost of living rises and people feel unsure about the future, they are holding their money more closely. “The sentiment around the country is that it’s getting to the point of becoming unbearable, with inflation outstripping wage growth and some people unsure about how they’re going to keep up with their regular payments.
“Companies need to be very aware of how consumers are feeling and thinking, especially as they begin to resort to more drastic measures to mitigate the problem. Those businesses who can offer savings or build trust among consumers will win out,” Crellin said.
Almost all Australians are worried the already high cost of living will further increase, and the impact this will have on other aspects of their life, with 56 per cent of Australians concerned about job security and 77 per cent worried about their salary not increasing. The same percentage are also worried that their investments are going backwards, including superannuation.
The research was conducted in late August 2022 and covered 1,000 people across Australia who are mainly or jointly responsible for household finances. The sample size was representative of the national population.
