Prices are up 4.3% on a year ago, but that number is an average. What matters is which costs are rising for a household like yours. Here is what the latest official figures say, and where to look in your own budget first.
Written by Alex BPublished 10 November 2026
Money Detective is built around practical household money tools for Australians.
Searches for "cost of living Australia" return a mix of removalists, student cost calculators and news. This page answers a different question: what is happening to the cost of running a household here, and what can you check in your own budget. The figures are from the Australian Bureau of Statistics (ABS), with release dates, and they will date. Check the ABS for newer releases. This is general information.
The ABS Consumer Price Index (CPI) measures how prices change for a typical basket of goods and services.
The ABS also publishes living cost indexes, which track what households actually pay, including interest charges. For the 12 months to the September 2026 quarter (released 4 November 2026):
| Household type | Annual change |
|---|---|
| Employee households | 5.1% |
| Other government transfer recipients | 4.9% |
| Age pensioners | 4.3% |
| Self-funded retirees | 3.8% |
Source: ABS, Selected Living Cost Indexes, September 2026. The ABS notes that transport and housing were large contributors for all household types, and that insurance and financial services, which includes mortgage interest charges, was the largest driver for employee and other government transfer recipient households.
That is why the same "inflation rate" feels different from household to household. A household with a mortgage, a car and rent to pay will see different pressure from a retiree who owns their home.
The most recent ABS household spending survey we could verify is for 2015-16, so treat it as a shape, not a current number. In that survey, households spent an average of $1,425 a week, with housing (20%), food (17%) and transport (15%) the largest shares. The point is not the dollar amounts, which are old, but that housing, food and transport usually make up the biggest chunks of a household budget, which matches where recent price rises have been.
The CPI is an average. Your own rise depends on what you spend. Enter your monthly spending in three groups, and change the rise for each if your own figures are different. The starting rises are the latest ABS annual changes for housing (5.2%), transport (8.7%) and the all-groups CPI (4.3%).
These are the areas the latest ABS figures point to, and the ones where checking is quick:
| Term | What it means |
|---|---|
| CPI (Consumer Price Index) | How prices change for a typical basket, reported by the ABS |
| Annual change | The change compared with the same period a year earlier |
| Trimmed mean | A measure that smooths out large price swings, reported by the ABS at 3.6% to September 2026 |
| Living cost index | A measure of what different household types actually pay, including interest |
| Contribution | How much a group, such as housing, adds to the total change |
The ABS reported CPI up 4.3% in the 12 months to September 2026. Its living cost indexes put employee households at 5.1%, other government transfer recipients at 4.9%, age pensioners at 4.3% and self-funded retirees at 3.8%.
The ABS said housing rose 5.2% on new dwelling and electricity costs, and transport rose 8.7% on higher fuel prices. We do not speculate on the wider causes here.
It depends on where you live, your household and your housing costs. A fixed national figure would not be accurate. The best number is your own essentials total, which you can work out with the emergency fund calculator.
See our cost of living help guide for payments and rebates we could confirm, and where to check the rest.
A price rise is easier to manage when you can see what it does to each pay. If a bill rises by $240 a year, that is about $9.23 more each fortnight ($240 ÷ 26). Add it to your list of bills before payday (see payday budget) and your safe to spend figure will reflect it from the next pay.
If costs have risen faster than your income and you are struggling, see cost of living help for payments and rebates to check, or what to do if you cannot pay your bills. The National Debt Helpline (1800 007 007) is free.
Payday Buffer shows bills due before your next payday, upcoming costs and essentials in one place. If you want a fuller picture of where each fortnight goes, Fortnightly Budget Plus has budget vs actual tracking. Both are Excel workbooks where you type in your own figures.
This article provides general information only. It does not take into account your personal objectives, financial situation or needs, and it is not financial advice. Examples use invented figures. Money Detective's tools provide estimates and planning information. Consider your own circumstances, and seek independent advice if you need it, before making financial decisions.