Cost-of-living pressures are expected to ease slightly this year with inflation now sitting around three-point two per cent. But recent shifts in consumer behaviour are likely to stick around for some time with new ways of spending becoming a force of habit.
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00:00Sally Atkins is a busy mother of two and prefers shopping online.
00:07We're saving money because we literally just get what we need.
00:11So I go through on my phone, click what I want and none of the extra stuff falls into our cart.
00:17Sally has records of her 2019 pre-pandemic grocery bills.
00:23Three litres of milk, some cherry tomatoes, carrots.
00:28A direct comparison of the exact same nine-item shop this year shows a 37% increase in price.
00:37We all know that there's a shortage of eggs at the moment but in 2019 it was $4.20 for a dozen eggs and today we're paying $7.80.
00:46Sally and her family are now routinely shopping around and they aren't alone.
00:52They may start with a food discount like Aldi, pick up some specials at a major supermarket.
00:58They're also considering alternative ways to access food and grocery.
01:01Costco for example to buy in bulk, even farmers markets to avoid that middleman.
01:07Click and collect has been my saviour.
01:09It stops me from buying the random things that we don't need and also shopping at places like Aldi or checking on the weekly specials.
01:18The latest CommBank report provides evidence consumers are cutting back on discretionary spending.
01:24In December people spent less on hospitality, recreation and household goods which recorded a fall of more than 8%.
01:33Until we start to see some rate relief in 2025 I don't think we'll start to see more spending take place until 2026.
01:43Joel Putland says his foster boat hire business is feeling the bite of higher costs and less trade.
01:51We've kept our prices pretty much where they were this same place and time two years ago which has really hurt the profitability of the business.
01:58And we've seen even doing that people are still not spending as much as they usually would when they're on holidays.
02:04The numbers on the beaches are still fairly strong but there just seems to be less people doing surf lessons and spending money.
02:12A reminder that while times may be tough you can't put a price on the simple things in life.