Key Takeaways
- → Most Australian households have seen costs rise across groceries, rent, insurance, and energy since 2022.
- → The biggest opportunities to reduce costs typically come from reviewing insurance, energy plans, and subscriptions annually.
- → Loyalty rarely pays with insurers and energy retailers. Comparing each year is how most people find a better deal.
- → None of the tips in this guide require major lifestyle changes. Most come down to comparing what you already pay against what else is available.
If your grocery run costs noticeably more than it did a few years ago, you are not imagining it. The same goes for your energy bill, your insurance renewal, and your mortgage repayment. Costs across most categories of household spending have risen since 2022, and many of those increases have stuck around.
This guide looks at the 10 areas where Australian households have felt it most. For each one, there is a quick explanation of what has driven the increase and one practical thing you can do about it. None of this is financial advice. It is a practical starting point for reviewing where your money is going.
Why Costs Have Risen Across the Board
Several things happened in a short period. Global supply chains disrupted by the pandemic made goods more expensive to produce and ship. Energy markets were thrown into volatility when the Russia-Ukraine conflict changed global gas supply. Housing demand in Australian capital cities outpaced supply, and rental vacancy rates fell to historic lows. Extreme weather events increased insurance claims, which flowed through to premiums. And wage increases in sectors like hospitality pushed up prices at cafes and restaurants.
None of these things happened in isolation, and none of them reversed quickly. The result for most Australian households is a cost base that is noticeably higher than it was in 2021. The question is not really whether it has gone up (it has), but where you have the most room to push back.
The 10 Categories: What Has Gone Up and What You Can Do
Groceries and Everyday Food
ABS consumer price index (CPI) data shows the food and non-alcoholic beverages category rose significantly between early 2022 and 2025. The ACCC's Supermarkets Inquiry (2024-2025) examined pricing practices at Australia's major supermarkets and found that Australian grocery prices rose faster than some comparable countries in certain categories during this period. Pantry staples, dairy, and protein-based items saw some of the larger increases.
Check the unit price label on the shelf, not just the package price. Home brand versions of pantry staples are typically 20-40% cheaper than branded equivalents for the same product. Meal planning for the week before you shop tends to reduce both what you buy and what you throw out.
Rent
PropTrack and CoreLogic data show that national median rents rose substantially between 2022 and 2025, with capital city rents seeing the largest increases as rental vacancy rates fell to historic lows in most markets. Strong interstate migration, a return of overseas students and migrants post-pandemic, and limited new rental supply all contributed to the squeeze.
The rent-versus-buying question is more detailed than it might first appear. The Rent vs Buy in Australia (2026) guide covers the numbers behind both options, including stamp duty, LMI, and opportunity cost.
Contact your landlord or property manager before your lease expires rather than waiting for a renewal notice. Offering to extend for a longer term (12-24 months) can sometimes be exchanged for a smaller increase or a frozen rate. Looking one or two suburbs further from high-demand areas can also reveal meaningfully cheaper options for a similar property.
Home Energy Bills (Electricity and Gas)
Australian electricity prices for households rose as wholesale market pressures from 2022 onwards flowed through to retail bills. The Australian Energy Regulator (AER) raised the default market offer (DMO) reference price in some states. Gas prices also increased as global supply disruptions affected the local market. The result for many households was a noticeable jump in quarterly bills, particularly in 2023 and 2024.
The government's Energy Made Easy website (energymadeeasy.gov.au) is a free comparison tool for electricity and gas plans in your state. Households on a default market offer may have better market offers available. Shifting high-energy appliances (dishwasher, washing machine, dryer) to off-peak hours can reduce costs on time-of-use tariffs.
Car Insurance
Comprehensive car insurance premiums rose significantly from 2023 onwards. Insurers cited higher repair costs (more expensive parts, longer wait times for repairs due to parts shortages), increased natural disaster events that damaged vehicles, and rising reinsurance costs globally. CHOICE research found substantial premium increases across multiple insurers in Australia during 2023 and 2024.
Compare at least three insurers at renewal rather than letting the policy roll over. Loyalty does not typically reduce your premium. A higher excess (the amount you pay before the insurer covers a claim) generally lowers the annual premium. Check whether optional extras like roadside assistance or hire car cover are actually worth it for how you use your car.
Home and Contents Insurance
Australia's increasing exposure to floods, cyclones, and bushfires has driven up insurer claim payouts significantly. Rebuilding costs have also risen with broader inflation and labour and materials shortages. In some regions, insurers have reassessed risk exposure and raised premiums sharply. The Insurance Council of Australia reported that natural disaster events in 2022 and 2023 were among the most costly on record in Australia.
Check that your sum insured (the rebuilding cost) is accurate. Over-insuring is common and raises premiums unnecessarily. Use comparison sites like Compare the Market or iSelect to check the market annually. Review your contents list and remove items you no longer own. Some insurers offer a discount for bundling home and contents policies.
Private Health Insurance
Australian health insurers can apply for a government-approved premium increase each year. In 2025, the approved average industry increase was 3.73%. Across five years of approved increases, this adds up noticeably. Gap fees for extras cover (dental, physio, optical) have also risen at many funds, meaning the out-of-pocket cost of using your extras has grown even when the premium stayed the same.
The government's free comparison website at privatehealth.gov.au shows what each fund covers at each tier. Check whether you are claiming on your extras cover. If not, downgrading or removing it may reduce your premium without affecting your hospital cover. Anyone approaching 31 should be aware that the Lifetime Health Cover loading applies after that age, so it is worth understanding what that means for your situation before then.
Loyalty rarely pays with insurers and energy retailers. The best rates tend to go to new customers, not existing ones.
Petrol
Petrol prices in Australia are tied to global crude oil prices and the AUD/USD exchange rate, which means they fluctuate considerably. Beyond the pump price, the ongoing cost of running a car has also increased through higher registration fees, CTP insurance (compulsory third party), and servicing costs. The total annual running cost of a typical Australian passenger car can be substantial. The How Much Should I Spend on a Car guide covers the full picture of car running costs in Australia.
Most capital cities have a weekly petrol price cycle. Prices are generally lower mid-week and higher on weekends. Apps like GasBuddy or state-based tools like FuelCheck (NSW) and MyFuel (NT) show real-time prices near you. Maintaining correct tyre pressure improves fuel efficiency by a small but consistent amount.
Mortgage Repayments
The Reserve Bank of Australia (RBA) raised the cash rate from 0.10% in May 2022 to 4.35% by November 2023 in response to inflation. For a borrower with a $600,000 variable rate mortgage, monthly repayments typically increased by around $1,000 or more over this period. While the RBA began cutting rates in 2025, repayments remain significantly higher than pre-2022 levels for most variable rate borrowers.
Check the rate new customers are being offered by other lenders and compare it to your current rate. Many banks offer better rates to attract new customers than they pass on to existing ones. Asking your lender to match a competitor rate is a reasonable first step. An offset account reduces the balance on which interest is calculated, which can lower the effective rate without requiring extra repayments.
Build a complete picture of your household spendingThe Affordly Budget Builder covers 60+ Australian expense categories, lets you set payment frequency, and shows your full monthly and annual breakdown.
Build My Budget →Streaming and Digital Subscriptions
Most major streaming services increased their prices between 2022 and 2025. Netflix, Disney+, Stan, Spotify, Apple TV+, and YouTube Premium all raised prices in Australia. Netflix also removed shared account access for subscribers outside the same household. Disney+ introduced a cheaper ad-supported tier alongside higher-priced ad-free plans. For a household running three to five services simultaneously, the total monthly cost has grown substantially compared to a few years ago.
The average Australian household subscription spend is covered in more detail in the How Much Are Australians Spending on Subscriptions in 2026 guide.
List every recurring digital charge and check when you last used each one. The Affordly Subscription Audit tool is a free way to add up your total annual subscription cost in one place. Rotating services (subscribing to one, cancelling, then starting another) gives you access to content without running multiple services at once. Ad-supported tiers cost less for services you watch occasionally.
Eating and Drinking Out
Restaurant, cafe, and takeaway prices have risen due to a combination of higher ingredient costs, Fair Work Commission wage increases (which have been welcomed by hospitality workers), and increased occupancy and operating costs for businesses. ABS data shows the meals out and takeaway food component of CPI rose steadily from 2022 through 2025. Delivery app orders carry additional fees on top of menu prices, which are often higher on delivery platforms than in-venue.
Lunch menus at the same restaurant are typically 20-30% cheaper than dinner equivalents. Many venues offer daily specials, set lunch menus, or early-bird pricing that are not advertised prominently. Ordering directly from a restaurant rather than through a delivery app avoids the platform and delivery fees. Batch cooking at home for weeknight meals and reserving eating out for weekends can keep the spend under better control.
Quick Wins at a Glance
Here is a summary of one practical action for each of the 10 categories. None of these require major changes to how you live. Most take less than an hour to look into.
Putting It Together
Most of these categories share a common thread: the increases have been gradual enough that many people have absorbed them without stopping to check whether they are getting the best available deal. Insurance, energy, and subscriptions in particular tend to roll over by default, which means the price rises with little active decision being made.
The biggest wins usually come from reviewing the categories where you have a choice. You cannot directly change rental market conditions or petrol prices, but you can compare insurers, switch energy plans, audit subscriptions, and have a conversation with your lender. That combination alone tends to be where most of the opportunity sits.
If you are not sure what your total household spending looks like across all of these categories, the Affordly Budget Builder is a useful starting point. It covers 60+ Australian expense categories, lets you set amounts and payment frequency, and shows a complete monthly and annual breakdown. And if you want to understand how your current spending affects what you can actually afford, the Why Most People Can't Afford What They Think guide covers the mindset side of that question.
See your full household picture
The Affordly Budget Builder covers 60+ Australian expense categories with payment frequency support and a full annual breakdown. Free, no sign-up, data stays in your browser.
Build My Budget →Sources
- ABS Consumer Price Index: Quarterly CPI data across food, housing, insurance, and other household categories
- PropTrack Rental Report: National and capital city median rent data
- Australian Energy Regulator (AER): Default market offer prices and energy market data
- Energy Made Easy: Free government electricity and gas plan comparison tool
- ACCC Supermarkets Inquiry (2024-2025): Examination of grocery pricing practices in Australia
- CHOICE: Research on insurance premium increases and consumer outcomes in Australia
- privatehealth.gov.au: Government private health insurance comparison and premium data
- Reserve Bank of Australia: Cash rate history and monetary policy decisions
- ASIC MoneySmart: General financial guidance for Australian consumers
This article is for general informational purposes only and does not constitute financial advice. Cost figures and percentage increases are approximate and sourced from published reports and government data. Individual circumstances vary. Verify current pricing, rates, and product details directly with relevant providers before making any decisions.