Cost of living

Living standards

Cost of living

The cost of living refers to the amount of money required to sustain a certain standard of living. Changes in the cost of living directly impact living standards and in turn, impact financial wellbeing.

The Wellbeing Data Dashboard is intended to measure wellbeing progress over time, with updates made every two years.

ACT Treasury publishes the latest key economic indicators at Economic Indicators for the ACT.

Consumer price index

This measure shows the annual change in inflation in Canberra. This is important because it helps us understand cost of living.

Inflation is measured by comparing the price of a 'basket' of consumer goods and services. The basket represents household spending and can be compared over time. Measurement happens for each three-monthly ‘quarter’ of the year, which is then compared with the same period in the previous year.

Inflation peaked at the end of 2022. The consumer price index for Canberra grew 7.1% over the year to the December quarter 2022. Since then, inflation has eased to be 5.7 per cent through the year to June quarter 2023.

Inflation increased between September quarter 2021 and December quarter 2022 but is now expected to be on a downward path.

ABS Consumer Price Index, Australia (previously ABS Cat. no. 6401.0), June quarter 2023, Tables 1 & 2.

Line graph of change in consumer price index in the ACT, by quarter from quarter 1 in 2013 to quarter 2 in 2023. By the end of quarter 2 in 2023 inflation was 5.7% compared to 6.3% at the end of quarter 2 in 2022.

The relative weights of the ‘basket’ of consumer goods and services considered for the CPI typically varies every financial year.