Christmas is just around the corner, and Australians are feeling the pinch of inflation more than ever. Luxury goods are being scrapped in favour of bargains, as families tighten their belts to make ends meet.
The Reserve Bank of Australia’s (RBA) consumer price index (CPI) showed inflation rose 0.4 per cent in the September quarter, driven by higher prices for petrol, food and housing.
The cost of living is rising at a time when household incomes are under pressure, with wage growth at a record low of 1.9 per cent.
As a result, many families are cutting back on Christmas spending and looking for bargains.
A survey of 2,000 Australians by finder.com.au found that 52 per cent plan to spend less this Christmas than last year.
One in four said they would spend less than $500 on presents, while one in 10 said they would spend nothing at all.
Finder’s money expert Bessie Hassan said families were being more mindful about their Christmas spending.
“Aussies are tightening their purse strings and looking for more affordable ways to celebrate Christmas this year,” she said.
“With the cost of living on the rise and wages growth at a record low, it’s no surprise households are feeling the pinch.”
Hassan said families were looking for ways to save on Christmas costs, such as doing their shopping online and taking advantage of sales.
“Shop around for the best deals online and in-store, and take advantage of any sales or discounts that are on offer,” she said.
“You might also want to consider homemade gifts or experiences rather than material items.”
This Christmas is likely to be a more restrained affair, with families prioritising spending on essential items. But even in tough economic times, Australians still know how to have a good time. So whatever your budget, there’s no need to skimp on the Christmas cheer.