CPI may understate the rising costs of retirement

As the Australian economy rebounded post-lockdown, we saw consumer inflation skyrocket to 7.8% in 2022! The RBA's intervention seemed to work, bringing the CPI back down to 3.6% in March 2024. But can a single "basket of goods" really reflect the diverse spending habits of Aussie households? Especially when retirement hits?

The ABS offers various Living Cost Indices (LCIs) to better capture cost-of-living changes for different household types. These indices are crucial for understanding the unique challenges retirees face, from soaring insurance premiums to mortgage-related costs.

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