Queensland families lose $10k a year as inflation bites budgets

Queensland families are losing more than $10,000 a year trying to maintain a basic standard of living as the impact of high inflation, rising energy costs and low housing affordability become clear.

The annual living affordability report by the Queensland Council of Social Service shows low-income households in the state are spending $200 per week over their income as cost of living pressures bite.

"Low income households are spending most of their income on basic goods and services, such as food, housing, and energy, with very little room for discretionary spending," the report said.

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The report found single, unemployed parents and couples with two children face the biggest weekly expenses among the five household models.

Single unemployed parents with two children fell $200 short each week to meet basic needs.

This is about $10,400 annually.

"This household faces high levels of deprivation and is highly vulnerable to financial shocks and indebtedness," the report said.

"This can result in households needing to make financial decisions that are not in the best interests of the household.

"For example, due to high inflation for foods such as meat and vegetables, households are more likely to substitute healthy foods with cheaper alternatives, which impacts on their daily nutrition.

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Meanwhile, a couple with two children faced a $174 per week deficit or about $9000 annually.

"With a deficit of 13 per cent of their weekly income, this household is vulnerable to financial shocks, emergencies, or unplanned expenses," the report said.

In terms of the hardest hit Queensland suburbs, Toowoomba and Cannonvale couples with two children faced the most financial strain in 2022.

It comes as inflation rose 6.9 per cent in the year to October after slowing from 7.3 per cent in September.

As inflation soared so to did the prices of everyday essentials with fuel skyrocketing by 17.3 per cent in a year, vegetables by 17.1 per cent, breakfast cereals by 13 per cent and dairy products by 12 per cent.

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The annual report models the expenditure and income of a sample of low-income households including single unemployed adults without children, single part-time employed students, senior couples, single unemployed parents with two children and a couple with two children.

The report found senior couples with no dependents were the only household that didn't see a deficit between their income and expenditure, with $76 a week left in their purse.