Today’s Cost of Living Indexes for the second quarter show that it continues to be those in employment who are being impacted by “cost of living pressures” the least; perhaps just as well given the slow pace of wages growth although worth noting that wages growth in the first quarter was running at 1.9%, which is still above the rate of cost of living increases.
The COL Indexes are designed to answer the question “By how much would after tax money incomes need to change to allow households to purchase the same quantity of consumer goods and services that they purchased in the base period?” They consider this question for a variety of household types (given the different expenditure patterns of households).
We see cost of living increases for all household types virtually unchanged from the previous quarter.
|Pensioner & beneficiary||0.7||0.0||2.4||2.0|
|Other Govt Transfer Recipient||0.6||0.0||2.5||2.0|