FOOD, PETROL, HOLIDAYS ... WHERE THE SAVINGS CAN BE MADE

Maybe it’s time to take a good, hard look at where you can cut costs

Inflation hit 7.8% over the past year, but the price of some items soared by double digits. We look at where the big jumps occurred – and how you can save.

Skip processed foods, buy fresh

The cost of fresh fruit and veg is up 5.1% over the past year, according to the Australian Bureau of Statistics. But that’s small change compared with the 11.1% hike in the cost of processed foods, such as prepared and frozen meals. It makes cooking meals from scratch using fresh produce a money saver.

Show a no-frills cow some love

The cost of dairy products has jumped 14.5% in the past 12 months, something Rabobank senior dairy analyst Michael Harvey says has been driven by “record-high farmgate milk prices and higher supply chain costs, along with tight supply due to declining Australian milk production”.

Higher prices will be welcomed by farmers, but the extra cost can curdle household budgets, especially as Australians are among the world’s biggest milk drinkers.

Switching to no-frills milk can help you save. As a guide, Woolworths home-brand milk is up to $1 a litre cheaper than branded equivalents. Given that Australians each drink an average of 93 litres of milk annually, that can mean a saving over the year of close to $400 for a family of four.

Hydrate with tap water

The cost of non-alcoholic drinks jumped 10% in the past year. That can make it worth cutting soft drinks from the household shopping list. But the big savings lie with water.

Australians buy almost 15 billion bottles of water every year, yet the University of Queensland says a single litre of bottled water costs around $3 compared with $3 for 1000 litres of tap water. If you’re buying a litre of bottled water daily, switching to tap water could see you save more than $1000 annually – and it’s better for the planet.

Try a few holiday hacks

Travel and accommodation costs have skyrocketed by 17.8%. One way to save is by booking ahead. Compare the Market says the best discounts for flights and accommodation packages are usually advertised six to 12 months in advance.

If you’re happy for a spontaneous vacation, it can be possible to score a $1-a-day campervan.

When campervan rental companies need to move vans to different locations, one-way hires can cost as little as $1 a day – sometimes with a fuel allowance thrown in. Head to sites like Apollo Camper or Discovery Campervans for details.

Or borrow a tent and try camping. In NSW, it can cost less than $16 per adult per night – and sometimes nothing – to camp in a national park. In Queensland, families can pay as little as $28 a night.

Use apps to drive 25% fuel savings

The price of fuel rose 7.5% last year – a simple way to save is by using an app that shows the cheapest fuel in your area. The RACV app confirms that in metro Melbourne, a litre of unleaded petrol can cost anywhere from 160.9 cents to as much as 203.9 cents – a difference of 25%. Other useful apps include the NSW government’s Fuel Check app, PetrolSpy, Motormouth, Pumped and GasBuddy.

Avoid power bill shock

The past 12 months have seen an 8.6% hike in electricity prices, and more shocks could be in store. EnergyAustralia, which provides electricity and gas to 2.4 million households and businesses, increased its prices by up to 14% from March 1. Other suppliers, including Origin, have already upped their prices.

Head to energy.gov.au to compare deals in your state. You may be able to switch and save in as little as two business days.