Ethical-lending fintech Beforepay’s Cost of Living Index for August 2023 showed a 4.9% month-on-month decrease in average daily spending, down to $61.92 from $65.13 in July. Based on data from more than 400,000 Australians, spending was down across all spending categories except petrol and auto, with discretionary spend showing the biggest decline.
Year-on-year, spending decreased 25.6% from $83.27 in August 2022. August 2022 was an unusually high-spending month, in part due to households retaining savings from the pandemic.
Shopping and durable goods drove the biggest decreases month-on-month from July 2023 to August 2023; shopping was down 12.7% from $8.56 to $7.47, while durable goods dipped 12.3% from $8.08 to $7.09.
Entertainment and leisure expenses had the next largest drop, down 6.8% from $3.52 in July to $3.28 in August.
Daily average spending on essentials all dipped slightly in August. Utilities were down 5.1% from $6.47 in July to $6.14 in August. This was followed by food and drink expenses down 3.1% from $12.02 in July to $11.65 in August, and groceries dropping slightly by 1.6% from $15.85 in July to $15.60 in August.
The 1.3% increase in petrol and auto expenses reflect the rise in petrol prices experienced in August. The Beforepay Cost of Living Index showed daily average spending for the category increased from $7.99 in July to $8.09 in August.
Below is a full month-by-month breakdown over the last 12 months. See sub-category descriptions here.
The Beforepay Cost of Living Index includes various household expenses such as utilities, groceries, food and drink, shopping, petrol, and fitness and health, providing a comprehensive overview of consumer spending, and is drawn from the spending data of more than 400,000 Australians.
Below are brief descriptions that outline the type of expenses applicable to each spending category.
Grocery stores where raw vegetables and meat are sold.
Any restaurant, pub or vendor that sells food that is not prepared or processed, i.e. not groceries.
Any spending on petrol, car maintenance and car accessories.
Spending on non-edible, non-durable goods, i.e. clothing, shoes, consumer packaged goods.
Spending on electricity, gas (home) and phone.
Movie streaming, tickets, mobile and console gaming, hobbies, bookshops and other recreation expenses.
Spending on long lasting products, such as white goods.
Any expenses on gyms, health insurance and chemists
Have questions? Reach out to mediaenquiries@beforepay.com.au for more information.
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. This article contains selected summary information only and is provided for general information purposes only. The Cost of Living Index data is derived from a Beforepay user’s average daily spend in selected household expense categories per person. The data may vary depending on the main bank account linked with Beforepay. The numbers have not been adjusted for seasonality. To the maximum extent permitted by law, Beforepay and the related bodies corporate of Beforepay, make no representation or warranty, express or implied, as to the accuracy, completeness, timeliness or reliability of the contents of this article. To the maximum extent permitted by law, Beforepay does 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.