Australians under 35 are feeling the heat the most from rising costs of living, forcing them to cut discretionary spending as many older consumers continue to shop, new data shows.
The Commbank iQ Cost of Living Insights report released Wednesday collected data from 7 million Commonwealth Bank customers. It reveals that consumers in their 30s are under the most financial pressure as inflation and interest rates continue to rise.
Analysis of consumer data from Commonwealth Bank and Quantium shows that year-on-year spending by people under 35 rose just 3.4% between Q1 2022 and Q1 2023, below the figure for 7% inflation. penny.
Those under 35 years of age reduced their spending on clothing, footwear and accessories by 8.4% in the first quarter of 2023, while spending on retail services, such as haircuts and beauty treatments, fell by 0, 6%.
During the same period, consumers age 35 and older increased their spending on clothing by 3.5 percent, while their spending on retail services increased by 9.7 percent.
Consumers 55 and older also posted year-on-year increases in their overall spending of 7.7 percent, above inflation.
CommBank iQ head of innovation and analytics Wade Tubman said that while many young Australians aged 18-24 had the benefit of living at home, housing costs were putting pressure on consumers aged 20-24. 30 years.
“Tenants are experiencing significant pressure. Rents are going up by one of the highest amounts they’ve been in a long time,” she said.