Mercury (Hobart)

At least computers and ice cream cost less

- ANTHONY KEANE

A COST of living crunch is being felt by many households, but Australian­s are getting more bang for their buck across thousands of products and services compared with a decade ago.

Detailed Australian Bureau of Statistics consumer price inflation data shows while overall costs have climbed almost 20 per cent since mid-2011, prices of several products have plunged more than 12 per cent.

Computing equipment had the biggest price falls, down 56 per cent, followed by telecommun­ication costs falling 25 per cent, but others on the list may surprise people more.

Fruit is now 15 per cent cheaper than it was a decade ago, while breakfast cereals, bank fees and even ice cream also cost less today.

For many, these small wins are overshadow­ed by bigger price increases in necessitie­s such as health, education and utilities, economists and budgeting specialist­s say.

KPMG chief economist Brendan Rynne said falling prices were all about global supply chains and competitio­n among manufactur­ers, retailers and other businesses.

AMP Capital chief economist Shane Oliver said lower prices for discretion­ary goods would continue if vaccines worked long-term and people went back to spending more money on holidays and entertainm­ent.

“It’s the necessitie­s of life that have been going up the most,” he said.

The ABS data shows electricit­y, gas, council rates, insurance, education and health costs have all jumped at least 40 per cent in a decade.

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