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Utility spending climbs 4.8% as energy price hikes approach
The Beforepay Cost of Living Index for May 2025 is $61.37.
Household utility spending increased 4.8% to a daily average spend of $7.04 in May, according to the latest Beforepay Cost of Living Index. The rise comes ahead of July’s scheduled electricity price hikes and follows a sharp drop in April. Overall spending month-on-month remained broadly stable, with the average daily spend falling just 0.4% to $61.37 in May, suggesting households may be recalibrating after the 4.7% decline seen in April—the steepest monthly fall this year. Year-on-year, the Index rose 1.1% from $60.69 compared to May 2024.
Aside from utilities, fitness and health recorded the largest monthly increase in May, up 5.9% month-on-month to a daily average spend of $3.24, potentially reflecting seasonal activity as we enter the cooler months. Durable shopping and general shopping also edged higher, both up 0.4% from April.
By contrast, spending in other essential and discretionary categories declined month-on-month. From food and drink (-2.5%) and entertainment (-2.3%) to groceries (-2.7%) and petrol and auto (-0.8%), consumers appeared to exercise continued caution across day-to-day expenses.
The largest annual gains came from fitness and health (13.7%), entertainment and leisure (9.8%), and food and drink (5.8%). Spending on groceries and petrol declined 6.5% and 3.1% respectively.
The Beforepay Cost of Living Index is drawn from real-time transaction data from over 450,000 users and tracks average daily spending across key household expense categories.
Below is a full month-by-month breakdown over the last 12 months. See sub-category descriptions here.
For more information contact mediaenquiries@beforepay.com.au for more information.
Cost Of Living Sub-Category Descriptions
Below are brief descriptions that outline the type of expenses applicable to each spending category.
Groceries
Grocery stores where raw vegetables and meat are sold.
Food & Drink
Any restaurant, pub or vendor that sells food that is not prepared or processed, i.e. not groceries.
Petrol & Auto
Any spending on petrol, car maintenance and car accessories.
Shopping
Spending on non-edible, non-durable goods, i.e. clothing, shoes, consumer packaged goods.
Utilities
Spending on electricity, gas (home) and phone.
Entertainment & Leisure
Movie streaming, tickets, mobile and console gaming, hobbies, bookshops and other recreation expenses.
Durable Shopping
Spending on long lasting products, such as white goods.
Fitness & Health
Any expenses on gyms, health insurance and chemists
About the Beforepay Cost of Living Index
The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories. As of March 2024, the average annual individual Beforepay customer gross income was $65,783 (counting only the main source of income) with a broadly representative geographic and gender breakdown. The data may vary depending on the main bank account linked with Beforepay. To the maximum extent permitted by law, Beforepay and its related bodies corporate, make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this article and do not accept any liability for any loss whatsoever arising from the use of this article or its contents or otherwise arising in connection with it. The Beforepay Cost of Living Index shows the average daily spend of Beforepay registered users across multiple household expense categories.
