Author: Mr and Mrs DDU.
Before you read this, if you haven’t already read our reasons for doing an inflation study, please have a read of it here.
Essentially, inflation is everywhere; businesses want to increase their prices, house owners want their main asset to go up in value, landlords want to increase their rent. We must grow our income to combat this. To show how important it is that we invest and to show inflation in ‘real time’, we are going to run a study showing how things increase in price. We will track a number of different products/services, updating our study over time to show the changes in price.
All products mentioned are sold in Australia and will be tracked in Australian dollars – the inflation will be a reflection of the Aussie economy.
So what are we tracking?
- The Government’s suggested annual living costs for a comfortable couple – $59,236
- (Mean) Average Australian House Price – $613.9K
- Average Australian House Rent per Week – $490 per week
- Water price per kilolitre – $2.6221 per kilolitre
- Aldi food basics basket (1 loaf of quality white bread $1.89, 700g carton of 12 free range eggs $4.39, 1kg of Australian ‘tasty’ cheese $6.99, 1kg of free range chicken breast $13.99, 1kg of pink lady apples $3.49, 2kg washed potatoes $2.99, 375g of Nutella $4.59, 500g regular salted butter $2.59, 455g of Vegemite $6.99, 12 rolls of toilet paper 2 ply $3.49) – $51.40
- A2 Milk 2L (priced from Coles supermarket) – $4.70
- Current Year Toyota Corolla Ascent Hatchback Silver (from Toyota Australia Website), automatic transmission no add ons – $25,779 driveaway price (includes Govt taxes)
- Newest iPhone (from Apple Australia website), 6S 4.7 inch screen silver, 16GB ($1,079), 64GB ($1,229) and 128GB ($1,379)
- Direct Return Flight (1 stop, under 25hours) with Qantas from Sydney to London (from Qantas website) booked for 3 months from today, returning 2 weeks later. $748+$894= $1,642
- 4Kg of Royale Canin Indoor Dry Cat Food (from Petbarn website) – $59.95
So there’s all our starting numbers, it doesn’t look exciting right now, we basically just told you how much a bunch of random things cost (you really wanted to know how much cat food costs in Australia didn’t you?). We’re interested to see how these prices change, particularly for services that have been getting cheaper recently (such as milk and flights). We’ve hopefully covered a good breadth of different products and services. As the years trickle by, we’ll hopefully have lots of interesting comparisons.
What are you doing to combat inflation? What item we’re tracking do you think will increase the most in price (in %) by this time next year?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!