The impact of the cost of living crisis is real
June 15, 2023
In light of consecutive interest rate hikes, and increased prices on just about everything from petrol to lettuce, we checked in with Western Australians last September to see how they were feeling about the rising cost of living. With things not getting much better since then, and no apparent light at the end of the tunnel, we again asked for the views of WA residents – not just to ask how they were feeling about the rising cost of living, but to determine the extent of the impact they have felt because of it.
We learned that Perth residents almost universally feel that their lifestyles have been impacted by the rising cost of living, with 96% citing some impact, and a third feeling significant impact! Fewer than 1 in 20 (4%) West Aussies feel that the rising cost of living has had no impact on their lifestyles at all.
In terms of what this impact looks like, there are some key areas in which people have been impacted, having to change their behaviour and reassess what they spend their hard-earned on…
4 in 5 (80%) reduced their spending on going out to bars, cafés or restaurants – either going out less, or spending less when they do go out. A similarly high proportion have reduced their spend in other areas such as clothes shopping, holidays and travel, or activities and days out. However, alarmingly, almost two thirds (63%) are cutting back on essentials in the form of food and groceries to get by in the current economic climate. Traditional ‘non-essentials’ (which have now become staples in most households) such as online streaming services, gym memberships, and music subscriptions are also facing the axe – hello free-to-air TV, going for a run, and listening to the radio!
And it doesn’t seem like people expect to being picking up their spend on going out, memberships, and subscriptions any time soon. Three quarters (72%) of Perth residents are expecting the economy to be in a state worse than it is now in 12 months’ time, with almost a third (30%) thinking the economy will be much worse off. We can only imagine how people will have changed their spend, consumption, and behaviour, if this eventuates.
With a high degree of uncertainty, but ever-present concern and impact, we’ll be sure to keep our ear to the ground to stay across how West Aussies are feeling, and keep you posted on what our community is thinking!
If you would like to have your opinions heard, join the community today: https://rewardingviews.com.au/
