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In December 2023, the Beforepay Cost of Living Index reported a notable surge in average Christmas spending, reaching $66 compared to $49 in 2022.
The data revealed that Australians adapted their holiday budgets by strategically reducing petrol and utility expenses
The increased holiday spending was made possible by reductions in petrol and utility costs in December. The average Australian saved $24 on petrol, auto, and utility spending in the month, more than making up for the cost. Petrol and auto expenses decreased by 5.47% from $8.41 to $7.95. Utility expenses also saw a decrease of 5.05% from $6.34 to $6.02, continuing a month-on-month trend observed in previous years. The daily average spend across all key spending categories rose 3.95% month-on-month from $62.34 in November to $64.69 in December. The month-on-month rise is a slight increase compared to the same period last year when the figure rose from $60.48 to $62.02 between November and December 2022.
Breaking down the spending categories, the December 2023 Beforepay Cost of Living Index highlighted a 3.95% increase in daily average spending from $62.23 in November to $64.69 in December. Shopping expenses saw a notable surge, increasing by 26.43% from $8.06 to $10.19, aligning with traditional year-end gift-giving and December sales. Durable goods spending rose by 8.53%, from $2.58 to $2.80, while entertainment and leisure spending increased by 8.21%, from $3.29 to $3.56, as Australia entered the holiday season.
Food and drink expenses experienced a more modest rise of 2.26%, from $11.07 to $11.32, and groceries increased by 0.98%, from $15.28 to $15.43. These figures suggest that, while socializing and festive dining were popular, consumers remained conscious of their spending habits.
Beforepay CEO Jamie Twiss commented on the data, noting, “The December Cost of Living Index highlights the adaptability of consumers. Even in a traditionally high-spending period, Australians are balancing their holiday spending and finding savings elsewhere to offset it. The decrease in petrol and utilities spending came at exactly the right time.” The December 2023 Beforepay Cost of Living Index provides a comprehensive view of consumer spending trends during a key period of the year, offering valuable insights into the behaviours and preferences of Australian consumers.
For more information about the Cost of Living Index visit the Beforepay website: https://blog.beforepay.com.au/tag/cost-of-living-index
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