Inflation could have been 'tipping point' for millions without savings
- From: AAP
- January 25, 2011
Due to a lack of savings, up to 3.7 million Australians won't be able to cope if the cost of living rises, a survey shows / File Source: Supplied
DUE to a lack of savings, up to 3.7 million Australians won't be able to cope if the cost of living rises, a survey shows.
And they are already struggling to make ends meet and have little to no savings, according to the Suncorp Life Confidence Index.
They believe their household budget will not allow for any increases in living expenses.
The index measures the ability to cope with job losses and rises in costs of housing, petrol, electricity and essential living expenses.
Suncorp Life chief financial officer John O'Farrell said the numbers were concerning.
"With the cost of fruit and vegetables expected to rise, today's inflation figures could be the tipping point for millions of Australians," Mr O'Farrell said yesterday.
Australia's inflation rate slowed to 0.4 per cent in the December quarter , for an annual rate of 2.7 per cent, said the ABS yesterday.
Economists' forecasts for the headline consumer price index (CPI) had centred on a rise of 0.7 per cent in the quarter, for an annual pace of 3 per cent.
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