Just over 25% of Australians are finding it difficult to survive on their income despite working longer than they did during the pandemic, according to new analysis by the Australian National University.
The results come from a survey of almost 3,500 adults.
The average Australian is now working almost 23 hours a week, which is higher than before the pandemic.
Almost 57% said that rising prices were a big problem. At the start of the year, only 37% thought this was true.
Rising prices (or inflation) have made it increasingly difficult for Australians to survive on their existing incomes – which in real terms, are falling.
This is because wages are not increasing at the same rate as inflation, meaning that while a person’s income may not change, it isn’t as valuable as it previously was.
The rate of inflation reached 7.3% last month. This is the highest level since 1990.
What is being done?
The Reserve Bank of Australia (RBA) is currently pushing up interest rates to combat inflation.
The RBA raised interest rates to 2.85% earlier this week, which is the highest level since 2013 and the seventh consecutive month that it has been raised.
The Federal Government has forecasted interest rates to peak at 3.35% by early next year.