If your money feels like it is not going as far as it used to, that is because it is not. New data from the Australian Bureau of Statistics shows that living costs rose for every household type in Australia in the year to December 2025 — with annual increases ranging from 2.3 per cent to 4.2 per cent depending on your circumstances.
Here are five things that are getting more expensive right now, and what the official numbers actually show.
Electricity Bills
This is the number that stops people in their tracks. According to the ABS electricity costs rose 37 per cent in the 12 months to February 2026 on an out-of-pocket basis.
The honest context: most of that rise reflects the expiry of government rebate programs rather than a 37 per cent increase in what retailers are charging. Excluding the rebate effect, the underlying electricity price rise was 4.9 per cent. That is still ahead of wage growth of 3.4 per cent over the same period — which means your power bill is taking a larger share of your income than it was a year ago.
For a full breakdown of what is driving electricity costs, see our electricity prices in 2026.
Rent
Rent rose 3.8 per cent in the 12 months to February 2026, according to the ABS. The national rental vacancy rate sits at approximately 1.2 per cent — one of the tightest on record and far below the 4 to 5 per cent considered a balanced market.
The number that puts it in perspective: the average new renter in Australia is now spending 33.4 per cent of their gross income on rent. The standard measure of housing stress is 30 per cent. Most new renters are already beyond it.
National rents have surged approximately 44 per cent over the past five years — adding around $204 per week to the median rental value compared to 2020.
For a full breakdown, see our Australia’s rent crisis in 2026.
Groceries
The average Australian household is now spending $178 per week on groceries — up 11 per cent from 2024 and nearly $3,000 more per year than in 2021, according to Canstar Blue research from July 2025.
The ABS records food and non-alcoholic beverages rising 3.1 per cent in the 12 months to February 2026. Meat prices have been particularly sharp — beef and veal rose 13 per cent annually, and lamb and goat rose 13.4 per cent, according to ABS data cited by SBS News.
A family of four is now spending approximately $240 per week — or $12,480 per year — on groceries alone.
For the full picture, see our Australia’s grocery bill in 2026.
Insurance
Car insurance premiums are rising across Australia, with increases of approximately 8 per cent projected for 2026. Home and contents insurance has also been climbing, driven by higher rebuild costs, extreme weather events, and reinsurance cost pressures flowing from global climate-related losses.
Insurance is one of the costs that rises quietly — it comes out of a direct debit once a year, and many households do not notice the increase until they check their policy renewal letter. Financial counsellors increasingly flag insurance as one of the “invisible” cost increases squeezing household budgets.
Eating Out
Meals out and takeaway rose 3.7 per cent in the 12 months to February 2026, according to the ABS. The increase is driven by higher wages for hospitality workers and higher ingredient costs flowing from the same food inflation hitting supermarket shelves.
For many households, eating out has shifted from a regular habit to an occasional treat. The data reflects this — 71 per cent of Australian shoppers now pay attention to supermarket specials, up from 63 per cent in 2024, as more people shift spending from restaurants back to home cooking to manage costs.
What the Data Tells Us
New ABS data shows living costs rose for all household types in the year to December 2025, with annual increases ranging from 2.3 per cent to 4.2 per cent. SBS The rises were driven largely by housing and food — two of the biggest and least avoidable expenses in any household budget.
The households feeling the most pressure are those on fixed or lower incomes, where essentials take up a larger share of total spending. As the Australian Council of Social Service noted in February 2026, people on the lowest incomes are bearing the brunt — with some forced to skip meals or go without medication as a direct result of cost pressures.
Wages grew 3.4 per cent in the year to December 2025. Most of these five cost categories grew at a similar or faster rate. In real terms, the average Australian household has less purchasing power today than it did a year ago. The data is clear on that.
Fenro will continue reporting on these numbers as new ABS data is released. For the full picture across all cost categories, see our Wages.
This article is for general informational purposes only and reflects the author’s own research and understanding of publicly available data. It does not constitute financial advice. Data was accurate at the time of writing — always verify current figures directly with official sources.
