Bills leave us blind to bargains

PRICES of popular goods are dropping across Australia, but consumers are rarely noticing because of the cost-of-living squeeze caused by their everyday household expenses.

From cars and computers to breakfast cereals and shoes, a News Corp Australia analysis of Bureau of Statistics data has uncovered dozens of items that have dropped in price over the past five years.

The biggest cuts have been in computing equipment and telecommunications, down 34 and 17 per cent respectively, while overall inflation rose 9.9 per cent. But savings are being offset by big price rises in areas such as utilities, health and education, and experts warn the cost of many services may rise faster in the coming years when wage growth picks up.

Baillieu Holst economist and adviser Darryl Gobbett said the price of manufactured goods had been falling globally as production moved from China into cheaper countries.

But any initial happiness about buying cheaper goods wore off quickly, he said. The ABS data shows that utilities, child care, education and health costs have climbed at least twice as much as inflation.