INFLATION TO TIP QUEENSLANDERS OVER EDGE
About 750000 Queenslanders were suffering significant cost of living pressures even before the floods and Cyclone Yasi and say they wouldn’t cope with any price increase to essentials such as food clothing transport education and entertainment within their current budget according to the Suncorp Life Confidence Index published in January.
The index found that 500000 Queensland residents are living ‘hand to mouth’ and are struggling from one pay cheque to the next with little or no savings.
Adding to the crisis of confidence the cost of electricity rose 13 per cent over the last 12 months with some experts predicting prices to double over the next five years.
“What is particularly concerning is that 697500 Queenslanders believe they would be unable to cope with any general living price increase within their current household budget” Suncorp Life’s CFO John O’Farrell said.
“With the cost of fruit and vegetables expected to rise as a result of the recent floods today’s inflation figures could be the tipping point for many Queenslanders.”
On a state by state basis Queenslanders and Western Australians were the least confident in the nation while South Australians were the most optimistic (see table below).
Other findings
• 651000 Queensland households would struggle financially if other household bills increased for example telephone pay TV.
• 478 000 Queensland residents believe they would struggle to survive financially with further increases in the price of petrol.