Australia’s Cost of Living Crisis Could Persist Until 2028, New Analysis Warns

Australian households could face several more years of financial pressure as high inflation and interest rates continue to strain budgets.

According to SBS News, analysis by the Committee for Economic Development of Australia (CEDA) found that the country’s economic “misery index” has returned to near post-pandemic highs, with conditions expected to remain elevated until at least the end of 2028.

The index combines inflation, unemployment and interest rates. CEDA said rising prices and borrowing costs are now the main drivers of financial pressure, while a weakening jobs market is adding to concerns.

The outlook highlights the challenges facing Australians paying rent or mortgages, covering essential expenses and managing everyday household costs.