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Spending declines 10.2% in January  

Consumer spending in January declined 10.2% from December, according to the latest Beforepay Cost of Living Index.

Spending declines 10.2% in January  

Australians reduced their average daily spending to $58.12 in the month, down from $64.69 in December 2023.  The month-on-month decline was greater than that seen between December 2022 and January 2023, when spending fell 8.4%, indicating slightly higher holiday spending this year and correspondingly greater cutbacks. The January figures are up 2.3% year-on-year from $56.83 in January 2023.  

Consumers decreased their spending in all categories tracked by the index with the exception of utilities, which saw a slight increase of 1.3%, rising to $6.10 from $6.02, driven in part by the warmer weather. Groceries experienced a slight dip of 1.7%, from $15.43 to $15.17, with more people eating at work than over the holidays.  

Spending declines 10.2% in January  

Spending on food and drink, petrol and auto, along with durable goods shopping, entertainment, and fitness and health, all fell. The fitness and health sector observed a 12.5% decline, dropping to $2.45 from $2.80, while entertainment and durable goods shopping fell by 10.4% and 14.4%, respectively. The most significant drop was in general shopping, which plummeted by 33.3% to $6.80 from $10.19, following a spike over the holiday.  

Jamie Twiss, CEO of Beforepay (ASX:B4P), commented on the latest data: “The January 2024 figures show that Australians are making sensible decisions about spending after relaxing during the holidays. Across-the-board reductions, while never fun, are an appropriate response to the higher spending we saw in December.”  

For more information about the Cost of Living Index visit the Beforepay website: https://blog.beforepay.com.au/tag/cost-of-living-index

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Yajush Gupta

Yajush Gupta

Yajush is a journalist at Dynamic Business. He previously worked with Reuters as a business correspondent and holds a postgrad degree in print journalism.

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