This briefing note looks at the evolution of inflation over the last term of government, failures of wage growth to keep up with inflation, and examines what the major parties proposed in the 2025 federal election campaign to alleviate cost-of-living pressures. 

Key insights

• Australia’s consumer price index (CPI) has increased by 23% since the start of the COVID-19 pandemic.
• Some of the highest price increases have been for essential commodities, including food and beverages, housing and transportation.
• More than a fifth (21%) of Australian families are showing signs of financial stress.
• Structural changes are needed to provide long-term relief from cost-of-living pressures, and to protect consumers from uncompetitive markets with a concentration of large retailers.
• People on government payments can’t fulfil their basic needs, especially with rental and interest rate hikes.