Aussie wallets squeeze tighter as household spending surges

Household spending has increased by almost five per cent as the cost of living crisis continues to place pressure on Australians.

New figures released by the Australian Bureau of Statistics have shown household spending was 4.9 per cent higher when compared to a year ago.

Spending on transport, fuel and health services saw the biggest increases, while spending on recreation and culture rose by only 0.3 per cent.

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As well as spending more on transport, the overall rise in household spending compared to September last year was driven by increases in health, food and accommodation.

The biggest increase was in transport, which saw an 18.4 per cent increase in the past year.

"This contributed to a 9.2 per cent rise in spending on non-discretionary goods and services, with households spending more on fuel as well as food and health services," ABS head of business statistics Robert Ewing said.

"Less spending on discretionary goods like furniture has been offset by increased spending on discretionary services like recreation and culture."

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It comes amid revelations the cost of living was climbing faster than inflation.

The new data showed that, compared to the same time last year, household spending rose in all states and territories.

Western Australia had the largest rise in spending, at 9.5 per cent, led by transport and health.

When comparing this month to last month, Victoria was the only state or territory to record a higher spending growth rate.

The Northern Territory had the largest fall in growth, dropping from +5.3 per cent in August to +0.5 per cent in September.