Most Aussies expect more price rises next year
Ipsos, one of the world's leading market research companies, today released the seventh edition of the Ipsos Cost of Living Monitor, a 32-country study which tracks how people around the world feel about their finances during the polycrisis.
Key Australian findings include:
- There is a strong expectation that prices will rise next year. Six in ten (61%) Australians Ipsos surveyed think the rate of inflation will increase in the next 12 months. This figure is up five percentage points since April 2024 but much lower than the eight in 10 Ipsos recorded throughout 2022.
- Four in ten Aussies (44%) are reporting they are worse off than before the pandemic, which puts us in 5th position in terms of the countries most likely to be reporting feeling worse off.
- Further, a third (33%) believe their disposable income will decrease in the next year.
- Eight in ten (81%) think the cost of their food shopping will increase in the next six months. This is a considerable increase from 73% in April 2024, and sees Australia sitting in 6th place globally.
- Overall, more Australians want tax cuts (32%) than more public spending (24%).
- While interest rates (76%) and the global economy (74%) are most commonly chosen as the drivers of inflation in Australia, Ipsos is seeing more people nominate immigration as a driver of inflation than they have previously. The proportion who chose immigration as a cause of inflation is up three percentage points since April, to 56%, and up 18 percentage points since April 2023.
Commenting on the findings, David Elliott, Deputy Managing Director, Ipsos Public Affairs Australia, said: “This latest global survey shows that across the globe many are feeling less than optimistic about the year ahead, despite declining inflation rates. In Australia this pessimism is particularly strong – we saw that we were fifth placed of the 32 countries when it came to our belief that we are worse off now compared to before the pandemic and in sixth place for those believing that the cost of our food shopping will rise."
“The other finding that stands out is the large increase in the proportion of Australians who believe immigration is a cause of inflation. While we appear to be divided on this, 56% believe immigration is a cause - this is a considerable increase on the 38% who held this view back in April 2023. This shift suggests that media discussion of the issue and arguments from the Federal Opposition in Parliament are getting traction among the Australia electorate.”
Key global findings include:
- There is a strong expectation that prices will rise next year. Two-thirds (65%) think the rate of inflation will increase in their country in the next 12 months. This figure is up seven percentage points since April and this is the highest figure Ipsos has recorded since November 2022. In Great Britain the expectation inflation will rise is up 23 percentage points since April.
- People more likely to feel worse off than four years ago. Thirty-seven per cent across 32 countries say they are worse off than before the pandemic, and this figure rises to 43% for G7 countries. Ipsos’ Consumer Confidence Index tracking shows a similar level of caution, with little improvement in outlook over time.
- More see immigration as a driver of inflation. The proportion who chose immigration as a cause of inflation is up four percentage points since April to 56%. People in Asia, Canada and Great Britain are more likely to see immigration as a factor than earlier this year.
- The gap between the wealthy and the rest is growing. Those on a low and middle income are more likely to say they are finding it difficult compared to earlier this year. Indeed, over the last two years the gap in outlook between high income consumers and everyone else has grown.
- Overall, more people want tax cuts than more public spending. Across 32 countries people say they prefer tax cuts even if it meant less money for public services than spending more and paying greater taxes. However, this masks big differences across countries. Türkiye, Romania and the Philippines back tax cuts, while Indonesia and Sweden want better public services.
