The little known and used Australian Bureau of Statistics (ABS) quarterly Living Cost Indexes for the December 2023 quarter released recently show that for 4 of the 5 household types the annual cost of living increased by more than the better known and much used Consumer Price Index (CPI).
The annual increase in the CPI was 4.1% and the annual increase in Living Cost Indexes for the 5 household types were:
| Household Types | Annual CPI Increase |
| Pensioner and beneficiary | 4.8 |
| Employee | 6.9 |
| Age pensioner | 4.4 |
| Other government transfer recipient | 5.2 |
| Self-funded retiree | 4.0 |
The greatest annual increase in living costs (6.9%) was for employee households.
According to the ABS, a significant difference between the Living Cost Indexes and the CPI is that the Living Cost Indexes include mortgage interest charges rather than the cost of building new dwellings. And, employee households were most impacted by rising mortgage interest charges, which are a larger part of their spending than for other household types. Self-funded retirees were the least affected as they tend to own their own house and are therefore less affected by increases in either mortgage interest charges or rents.
This recent The Conversation article by Peter Martin contains background information about the CPI, including why it now excludes mortgage and other interest payments and why it may not be a good indicator of the cost of living for many types of households.