Selected Living Cost Indexes, Australia

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Living Cost Indexes (LCIs) measures the price change of goods and services and its effect on living expenses of selected household types

Reference period
June 2025
Released
6/08/2025
Release date and time
06/08/2025 11:30am AEST

Key statistics

  • The Living Cost Indexes (LCIs) recorded rises between 0.4% and 1.0% in the June 2025 quarter.
  • Housing and Food and non-alcoholic beverages were the main positive contributors across all LCIs. Transport and Insurance and financial services partially offset the rises.
  • In the twelve months to the June 2025 quarter, the LCIs rose between 1.7% and 3.1%.

Overview

Quarterly living costs

Living costs rise for all household types

All household types recorded increases in living costs this quarter. Age pensioner, Other government transfer recipient and Pensioner and Beneficiary households saw the largest rises in living costs this quarter. For the first time since the March 2022 quarter, Employee households recorded the smallest quarterly increase across the LCIs. 

Housing and Food and non-alcoholic beverages were the main contributors to the rise in living costs across all household types this quarter. The main offsetting contributors were Transport and Insurance and financial services.

  1. Housing includes Rents, Utilities, and Other housing (Property rates and Maintenance and repair of the dwelling).
  2. Mortgage interest charges is included in Insurance and financial services.

All household types recorded rises in Housing due to increases in Electricity costs. Out-of-pocket electricity costs rose this quarter as the second instalments of both the Commonwealth Energy Bill Relief Fund (EBRF) and State government rebates in Perth were used up by households in the previous quarter. Households in Queensland also contributed to the June quarter rise as they continued to use up the $1,000 State government rebate. 

Rebates have the effect of reducing electricity costs for households. More details on the impact and timing of these rebates are provided in the latest Consumer Price Index publication.

Food and non-alcoholic beverages rose across all household types, driven by fruit and vegetables. Strawberries, blueberries, grapes, tomatoes and cucumbers saw price rises following reduced supply, which is typical this time of year.

Transport and Insurance and financial services partly offset the overall quarterly rise in living costs across all household types. Transport costs fell due to price falls for Automotive fuel reflecting lower global oil prices in that period. 

Insurance and financial services fell largely due to a fall in Mortgage interest charges. Banks cut interest rates for both variable and new fixed rate home loans following the Reserve Bank of Australia’s decision to lower the cash rate target in February 2025, leading to a fall in Mortgage interest charges for all household types. 

Living costs for households whose main source of income is government payments recorded the strongest quarterly rise in living costs across all household types

Living costs for Age pensioner (+1.0%) and Other government transfer recipient (+1.0%) households and the Pensioner and Beneficiary LCI (PBLCI) (+1.0%) rose this quarter. Households represented by these indexes source their principal income from government payments.

The increase in living costs for these households were driven by an increase in Housing costs. These households saw a larger impact from the EBRF and State government rebates in Perth and Queensland being used up compared to other household types as they have relatively smaller electricity bill sizes, which means the increase had a proportionally bigger impact on their out-of-pocket electricity costs. 

a. Housing includes Rents, Utilities, and Other housing (Property rates and Maintenance and repair of the dwelling).

Self-funded retiree households recorded a rise of 0.6% this quarter

Self-funded retiree households, whose primary source of income is superannuation or property income, rose 0.6% this quarter, following a 0.6% rise in the March 2025 quarter.

Medical, dental and hospital services and Holiday travel and accommodation make up a larger proportion of expenditure for Self-funded retiree households than they do for other household types. Medical, dental and hospital services recorded a rise this quarter reflecting an increase in health insurance premiums on 1 April. Holiday travel and accommodation rose this quarter due to an increase in demand for international holiday travel to Europe at the start of their peak tourist season. 

Employee households recorded the smallest rise across all household types (+0.4%)

Living costs for Employee households, whose primary source of income is wages and salaries, rose 0.4% in June 2025 quarter, following a 1.1% rise in the previous quarter. The rise was mainly driven by increases in Housing and Food and non-alcoholic beverages. 

This rise was partly offset by falls in Mortgage interest charges, which make up a higher proportion of expenditure for Employee households. Mortgage interest charges fell 1.4% due to banks cutting interest rates for both variable and new fixed rate home loans following the Reserve Bank of Australia’s decision to lower the cash rate target in February 2025.

Annual living costs

Annual rises in living costs slow

In the twelve months to the June 2025 quarter, all LCIs rose between 1.7% and 3.1%, slowing from annual rises of between 2.4% and 3.5% to the March 2025 quarter.  

Housing, Food and non-alcoholic beverages and Alcohol and tobacco were the main contributors to annual living cost increases across the household types. 

Smaller annual rises in living costs came with a continued slowing in growth for Insurance and financial services and a larger annual fall in Transport compared to the March quarter.

The moderation in annual growth for Insurance and financial services was driven by Mortgage interest charges. Annual growth in Insurance has continued to moderate due to an easing in reinsurance and claims costs. 

Transport costs fell in the 12 months to the June 2025 quarter due to price falls for Automotive fuel reflecting lower global oil prices in that period.

Government payment recipient households recorded the largest annual rises in living costs this quarter, driven by larger rises in electricity costs. These households saw a relatively larger impact on their out-of-pocket costs from the EBRF rebates being used up compared to other household types. 

Strong annual price rises for Tobacco and Rents also contributed to the annual rises for Other government transfer recipients (+3.1%) and Pensioner and beneficiary households (+2.9%). Rents and Tobacco make up a higher proportion of expenditure for these household types. 

Employee households recorded an annual rise of 2.6%, driven by Mortgage interest charges, which make up a higher proportion of expenditure for this household type.  Annual growth for mortgage interest charges has continued to slow, with an annual rise of 4.5% to the June 2025 quarter, down from an 8.8% annual rise last quarter.

Self-funded retiree households recorded the smallest annual rise (+1.7%) of all the LCIs. Mortgage Interest charges, Rents and Tobacco, which all had strong annual price growth, make up a smaller proportion of expenditure for this household type.

Main annual contributors to cost of living changes for each household type

Housing, Food and non-alcoholic beverages and Alcohol and tobacco were the main annual contributors across the household types.

Main annual contributors to cost of living changes
Household typeMain annual contributors
Pensioner and beneficiary (PBLCI)Housing (b) (+4.1%)
Food and non-alcoholic beverages (+3.1%)
Alcohol and tobacco (+7.4%)
Insurance and financial services (a) (+4.0%)
EmployeeInsurance and financial services (a) (+4.3%) 
Food and non-alcoholic beverages (+3.0%)
Housing (b) (+2.8%)
Alcohol and tobacco (+5.5%)
Age pensionerHousing (b) (+4.4%)
Food and non-alcoholic beverages (+3.2%)
Health (+4.0%)
Insurance and financial services (a) (+3.9%)
Other government transfer recipientHousing (b) (+4.1%)
Alcohol and tobacco (+8.2%)
Food and non-alcoholic beverages (+3.2%)
Insurance and financial services (a) (+4.2%)
Self-funded retireeFood and non-alcoholic beverages (+3.2%)
Health (+3.5%)
Alcohol and tobacco (+4.4%)
Recreation and culture (+1.4%)
  1. Mortgage interest charges is included in Insurance and financial services.
  2. Housing includes Rents, Utilities, and Other housing (Property rates and Maintenance and repair of the dwelling).

Contributors to quarterly change

Quarterly percentage change, Commodity group - March quarter 2025 to June quarter 2025
Weighted average of eight capital citiesPensioner and beneficiary LCI (%)Employee LCI (%)Age pensioner LCI (%)Other government transfer recipient LCI (%)Self-funded retiree LCI (%)Consumer Price Index (CPI) (%)
Food and non-alcoholic beverages1.01.01.01.01.01.0
Alcohol and tobacco1.00.50.71.20.30.7
Clothing and footwear3.32.83.03.52.82.6
Housing (a)3.51.74.03.01.11.2
Furnishings, household equipment and services0.91.10.90.91.11.1
Health-1.01.6-0.7-1.30.81.5
Transport-0.9-0.8-0.8-1.0-0.7-0.7
Communication0.30.30.40.10.40.1
Recreation and culture0.30.50.50.30.60.5
Education0.0-0.10.0-0.10.00.0
Insurance and financial services (b)-0.8-1.1-0.5-0.8-0.60.5
All groups1.00.41.01.00.60.7
  1. New dwelling purchase by owner-occupiers are included in the CPI but excluded from the Selected Living Cost Indexes.
  2. The Selected Living Cost Indexes includes interest charges and general insurance. Interest charges are excluded from the CPI and general insurance is calculated on a different basis.

For further analysis on commodity group contributors, please see the latest release of the Consumer Price Index.

Data downloads

Time Series Spreadsheets

Data files

Use of price indexes in contracts

Price indexes published by the Australian Bureau of Statistics (ABS) provide summary measures of the movements in various categories of prices over time. They are published primarily for use in Government economic analysis. Price indexes are also often used in contracts by businesses and government to adjust payments and/or charges to take account of changes in categories of prices (Indexation Clauses).

Use of Price Indexes in Contracts that sets out a range of issues that should be taken into account by parties considering including an Indexation Clause in a contract using an ABS published price index.

Frequently asked questions

The Frequently Asked Questions page that has answers to a number of common questions to do with price indexes and the Consumer Price Index, in particular.

Previous catalogue number

This release previously used catalogue number 6467.0.

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