The statistic shows the inflation rate in Australia from 1987 to 2023, with projections up until 2030. The inflation rate is calculated using the price increase of a defined product basket. This product basket contains products and services, on which the average consumer spends money throughout the year. They include expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. In 2023, the average inflation rate in Australia was at about 5.62 percent compared to the previous year. Australia's economy Australia has one of the world’s largest economies and is a significant global importer and exporter. It is also labeled as one of the G20 countries, also known as the Group of Twenty, which consists of 20 major economies around the globe. The Australian economy is highly dependent on its mining sector as well as its agricultural sector in order to grow, and it exports the majority of these goods to eastern Asian countries, most prominently China. Large quantities of exports have helped Australia maintain a stable economy and furthered economic expansion, despite being affected by several economic obstacles. Australia’s GDP has seen a significant increase over the past decade, more than doubling its value, and experienced a rather quick recovery from the 2008 financial crisis, which indicates that the country experienced economic growth as well as higher productivity. One of the primary reasons is the further development of the nation’s mining industry coupled with the expansion and success of many Australian mining companies.

The Crisis and Care Accommodation industry forms part of Australia's community welfare sector and provides services for some of the most economically vulnerable people in Australian society, including children, those with long-term disabilities and the elderly. Even before the COVID-19 pandemic and the cost-of-living crisis, a growing number of Australians were at increased risk of homelessness, with many experiencing financial hardship, persistent disadvantage and social exclusion. Stagnant wage growth in inflation-adjusted terms, heightened housing stress and associated incidences of family breakdown and family violence have boosted demand for crisis and care accommodation over the past few years. Given high inflation and rising rental costs, many of the industry’s clients have become increasingly vulnerable and their needs are also becoming more complex. Rising disability prevalence is creating additional challenges for residential care providers, with the Australian Bureau of Statistics finding that 5.5 million Australians had a disability in 2022 (latest data available). However, the ability to meet increased demand hasn't necessarily been matched by additional funding, constraining industry and profit growth. In light of these socio-economic variables and supply constraints, industry revenue growth is expected to be a modest 4.3% annualised over the five years through 2024-25 to $5.7 billion, including anticipated growth of 4.0% in the current year. Solid demand for residential care services will persist in the coming years, bolstered by a strong need for homelessness services as high rents and inflation exacerbate Australia’s housing crisis. An ageing population is set to continue driving demand for palliative care and respite services, while the existence of deep and persistent disadvantage among Australia’s most vulnerable population cohorts will continue to sustain demand for crisis and rehabilitation care. Government policies and associated regulatory reforms – including those stemming from the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability – will dictate the industry's operating environment. Industry growth rates will remain modest at 2.7% annualised through 2029-30, to reach $6.5 billion.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 116.2 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Online shopping has become a way of life. Once considered a novelty, much like the internet itself, the online shopping phenomenon has surpassed business and consumer expectations. It has evolved and expanded rapidly, with escalating internet and broadband uptake and changing consumer attitudes helping online shopping become a mainstream retail avenue. Greater investment in online platforms to advance website navigation, enhance security and improve delivery is fuelling a shift in consumer buying habits towards online shopping. The pandemic brought retail trading in Australia to a standstill, with lockdown periods and restrictions leading to a surge in online shopping sales. As consumers jumped online at breakneck speed, the online market was flooded with new entrants and businesses ramped up their digital sales capabilities to keep up with demand. Despite the hype and surge in sales, challenging trading conditions in the post-pandemic environment have eroded some of the earlier gains. Strong inflation and rising interest rates have combined to create a cost-of-living crisis, with consumers reassessing their online spending habits in the face of tightening purse strings. Nonetheless, revenue is anticipated to have grown at an annualised 7.4% over the five years through 2024-25 and is expected to total $58.0 billion in the current year, when revenue is set to climb by an estimated 5.2%. Going forwards, online shopping revenue is forecast to climb at an annualised 6.5% through the end of 2029-30 to total a projected $79.4 billion, aided by continued consumer demand. Greater digital connectivity will allow consumers to shop anywhere and anytime, with advances in augmented reality opening new doors for online retailers. Strong revenue prospects will entice more bricks-and-mortar retailers to launch online stores to complement their physical store network, while many online retailers will open shopfronts and flagship stores, blurring the lines between the two. Escalating competition, particularly from international low-cost retailers like Temu and Shein, will limit growth in profitability.

Consumers’ growing awareness of fast food’s nutritional content and shift towards healthier eating habits have challenged demand for fast food and takeaway food services. In response, fast food brands have expanded their menus to include more nutritious, premium options with reduced fat, sugar and salt. Major companies have adapted to this trend, with McDonald's expanding its premium burger range and KFC focusing on fresh, locally sourced ingredients. The number of chicken-based fast food, which is considered healthier than traditional fast food, is also increasing. The recent cost-of-living crisis has had a mixed impact on the industry as consumers ‘trade down.’ Although people are refraining from overspending on eating out, they’re preferring to spend on fast food meals instead of paying for full meals at restaurants. Industry revenue is expected to have grown at an annualised 2.6% over the five years through 2024-25 to $29.6 billion. This trend includes an anticipated 2.9% jump in 2024-25. Consumers’ surging reliance on online delivery platforms during the pandemic boosted industry revenue but also pressured profitability, since online delivery platforms charge commissions per order. Rising food inflation has led businesses to increase menu prices to offset higher purchasing costs, with most major franchises able to pass on costs downstream to consumers, which has driven profitability growth over the five years through 2024-25. Shifting consumer preferences and evolving business models will drive industry growth over the coming years. Companies will increasingly focus on offering plant-based alternatives, reshaping their menus, with major brands set to expand their vegetarian and vegan options to capture rising demand for sustainable, health-conscious meals. Refranchising will also improve industrywide profitability, as fast food giants will reduce their operational costs by shifting company-owned stores to franchisees. This model allows brands to focus on marketing and innovation while franchisees manage day-to-day operations. These strategies, alongside international expansion, will boost competition and industry growth. Revenue is forecast to rise at an annualised 4.3% over the five years through 2029-30 to reach $36.6 billion.

The Clothing Retailing industry is susceptible to consumer spending patterns, which is why the digital revolution and inflationary pressures have beset its performance over recent years. The pandemic forced most retailers to shut down temporarily, eroding instore sales and fast-tracking their transition into the digital space. Clothing retailers have continued to merge the physical and online sectors as part of their multichannel agendas, developing websites and mobile apps, accompanied by increased expenditure in digital marketing, to boost the number of customer touchpoints. This trend enabled retailers to capitalise on the pandemic-driven online shopping boom. Retailers benefited from higher profitability as pandemic restrictions eased, with revenge spending and soaring inflation boosting earnings. However, the cost-of-living crisis has led consumers to pare back their expenditure over the two years through 2024-25, restricting their outlay on non-essentials like clothes or prompting them to choose more cost-effective options online. Overall, revenue is expected to have grown at an annualised 2.6% over the five years through 2024-25 to $28.1 billion. This includes an anticipated 8.3% fall in 2024-25 as consumer pessimism compels shoppers to save more and spend less. Clothing retailers have faced fierce competition from online-only sellers, major international brands and department stores. At the same time, customer behaviour has trended towards a hybrid shopping process, as some shoppers have browsed clothing online from the comfort of their homes before making a purchase instore. The reverse is also true – some consumers try out apparel instore and then wait for sales online. Volatile consumer sentiment has encouraged some shoppers to reduce spending on discretionary items like clothing. Increased disposable income from government stimulus during the pandemic initially insulated against financial pressures. However, high inflation has since made consumers more frugal, heightening the industry's revenue volatility. Despite these negatives, an stronger Australian dollar is set to ease input costs over the past five years, translating into higher industry profitability. Looking ahead, improving consumer sentiment and disposable incomes will support higher clothing sales. However, competition from pure-play online retailers like Shein is set to intensify. In turn, retailers will need to develop robust multichannel retailing strategies and position themselves in niche markets to flourish in an increasingly competitive environment. Industry revenue is forecast to inch upwards at an annualised 0.3% over the five years through 2029-30 to $28.7 billion.

The retail landscape has undergone a substantial digital transformation over the past few years due to the COVID-19 pandemic, which is why the Online Consumer Electronics Sales industry has flourished. Increasing acceptance of online shopping has sustained robust industry growth. Online retailers’ ability to provide products at lower pricepoints than traditional consumer electronics retailers has enabled the industry to better withstand poor economic conditions. Online computer electronic product purchases are considered a cost-effective alternative to purchasing from traditional bricks-and-mortar stores. Yet, weakening consumer sentiment and the cost-of-living crisis have partly restricted consumer demand and expenditure on industry products recently. Falling real household discretionary income has encouraged more bargain seekers and propelled sales of versatile electronics like mobile phones instead of big-ticket items like home entertainment products, boosting industry revenue. Industry revenue is set to climb at an annualised 5.9% over the few years through the end of 2024-25, to $4.5 billion. This trend includes anticipated growth of 1.7% through the end of 2024-25; a more modest result than previous years as consumers become more price-conscious. Retailers have benefited from significant technological change, driving revenue growth. Continued innovation among electronic devices has supported demand. Alongside intense price-based competition, online retailers’ lower operating costs compared to traditional bricks-and-mortar retailers have ensured cost savings for consumers but have diminished operators’ profit as a share of revenue. A rise in industry revenue has prompted traditional retailers like JB Hi-Fi to invest heavily in their online sales channels, boosting their market share. Online-focused retailers like Amazon have invested more in distribution efficiency, resulting in a rapid growth in market share. Overall, revenue is set to rise by an annualised 5.6% over the coming years through the end of 2029-30, to $5.9 billion. Industry participation is set to dip due to more intense price wars, with unprofitable, small-scale retailers exiting the industry. Improved data connectivity and continuous product innovation are poised to facilitate demand for consumer electronics that capitalise on increased data speeds as consumers update their existing hardware. Higher sales volumes of modern technology will likely boost industry profitability.

The Telecommunications Services subdivision comprises companies that sell fixed-line, wireless and resold telecommunications services to consumers. Digitisation has accelerated over the past few years, meaning households, businesses and government markets have required faster and more convenient telco services. Users have increasingly relied on mobile phones to access various services, from communicating using mobile apps to accessing online entertainment, like video and sports streaming. A shift towards wireless services has also weakened fixed-line services’ revenue. Overall, revenue is expected to have dropped by an annualised 3.7% over the five years through 2024-25, to $34.7 billion. Despite surging data usage, telecommunications service providers’ revenue has diminished over the past five years. Household consumers have tightened spending on telecommunications services amid a cost-of-living crisis and inflationary pressures, cancelling duplicate services and consolidating communications. This has led revenue to dip by an estimated 2.5% in 2024-25. The investment required to deliver cutting-edge solutions like 5G networks and satellite data services to customers in wider areas, including rural and remote regions, has escalated purchase costs as telcos invested heavily in acquiring advanced equipment and spectrum licenses for 5G networks. Service providers have passed on inflated costs to consumers by raising prices for services, like mobile and wired connections, which has helped improve subdivision profitability. Data usage will continue to expand as new technologies like 5G networks satisfy consumers’ appetite for faster internet speeds and reliable networks to support their everyday online activities. The 3G network's shutdown will encourage consumers to update devices. Growth in Internet of Things (IoT) technologies and products, which consumers are increasingly adopting, will boost data usage, which is set to stimulate subdivision growth. More consumers are projected to connect several devices through the internet, from smartphones and wearables to smart home technologies. As such, subdivision revenue is forecast to climb at an annualised 1.2% through the end of 2029-30, to reach $36.7 billion.

The Luxury Accommodation industry has endured significant turbulence over the past five years, primarily due to shocks and ongoing impacts associated with the pandemic. Strict travel bans in 2020 led to a heavy reliance on domestic tourist traffic, causing sharp declines in revenue and profitability across the sector. Occupancy rates fell from 79.2% to 50.8% between 2018-19 and 2020-21, while RevPAR dropped by 42.2%. The industry also experienced a drop in employment, particularly among casual workers. However, the industry has shown resilience with rebounding occupancy rates and increased RevPAR driven by pent-up demand and the easing of travel restrictions. Employment levels have since surpassed pre-pandemic benchmarks, propelled by the reopening of international borders. The industry has also witnessed a flurry of new luxury hotel openings, placing further upwards pressure on employment numbers due to increasing labour demand. Despite a cost-of-living crisis causing a dip in domestic demand, occupancy rates and RevPAR have reached record highs, pushing up profit margins towards historical pre-pandemic levels. Overall, industry revenue is expected to grow at an annualised 6.8% over the five years through 2024-25, to total $8.8 billion. This trend includes an anticipated rise of 1.4% in 2024-25. The industry’s future will be shaped by several key factors, with inbound tourists from affluent markets expected to drive growth. However, the challenge will be to capture high-spending visitors through innovative marketing campaigns and loyalty programs. With more luxury hotels set to open over the next five years, incumbent establishments will need to find strategies to avoid complications associated with increasing market saturation and growing competition. However, improving domestic economic conditions should enhance demand from domestic travellers. Businesses that can achieve occupancy rates of 80.0% and above will be key to maintaining strong profit margins. Industry revenue is forecast to grow at an annualised 3.8% over the five years through 2029-30, to total $10.6 billion.