Life is getting more affordable for Australians.
Cost of living pressures for Australians are easing and while things are getting more expensive, prices have remained relative to income.
Australian insurance provider Budget Direct recently put together this interactive which looks at how the cost of living has changed in the country over the past 100 years.
It takes into account soaring inflation rates and wages to see how prices stack up in five categories: income, rent, house prices, petrol and shopping.
“When we’re so caught up in the day to day spending, it’s easy to feel like we’re not getting value for money on our hard-earned cash,” says Brad Seymour, Budget Direct’s director of partnerships and communication.
“The Cost of Living tool that we have created really illustrates how, as a generation, we’re getting better value for money in many areas.”
Check it out below.
The weekly income for Australians has grown exponentially in the last 100 years. In 1910, the average weekly income would be approximately equivalent to $197 today. The average income looks to be $2,815 a week in 2030 but only time will tell how far that money will go.
Almost half our average wage was spent on rent in 1910. Nowadays, rents take up little more than a quarter of the average wage. A similar scenario is expected for the year 2030.
Meanwhile, house prices have been on an incredible trajectory, growing faster than both inflation and wages. By the year 2030, it may even take five years to save up for a home deposit.
Petrol, one of the largest weekly expenses, has become more affordable for Australians. Recent data by Commsec showed that the national average price for unleaded petrol fell to 106.5 cents per litre earlier this year -- the lowest it had seen in seven years. In 1910, it would have been nearly impossible for someone to own a car back in 2010 on the average wage.
Food prices are not expected to make a huge dent in the wallet in the coming years as they did back in 1910. According to the chart, two litres of milk 100 years ago would have cost the equivalent of $26 today.
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