A new report has lifted the curtain on the startling personal toll of Australia’s inflation crisis, with three in five people reporting that their personal financial situation has worsened in the past year.
Compare the Market’s Household Budget Barometer for 2026, released today, puts real numbers on the price rises Australians are managing every day.
Key findings on everyday bills include:
- Home and contents insurance quotes are up about 26% over two years across the five biggest capitals. Car insurance is up around 21% over the same period.
- In dollar terms, that is roughly $599 more for home and contents and $375 more for car insurance.
- Average mortgage repayments are double what they were five years ago, driven by higher interest rates and larger loan sizes.
- Australians with private health insurance pay an average of $2,713.53 a year.
The nationally representative survey of more than 3,000 Australians also highlights the psychological impact of prolonged inflationary pressure:
- 85% say inflationary pressures have lasted longer than they expected.
- Just 9% think the cost of living is improving.
- 61% describe themselves as financially fatigued and less able to make proactive money decisions. Financial fatigue peaks among 35–44-year-olds.
Five years into the country’s cost-of-living crisis and facing the prospect of further rate hikes, Compare the Market’s Economic Director, David Koch, said Australians had entered an era of “budget burnout”.
“Australians need to see the finish line,” Mr Koch said. “Right now, every time households feel like they’re getting closer, the chequered flag shifts further down the track. No wonder it feels like we’re stuck in reverse.
“We’ve had four cash rate increases adding thousands onto mortgages, meanwhile things like car insurance and home and contents quotes are up hundreds of dollars – all of this really hurts.
“The cruel irony is, when people are stretched financially, that’s exactly when they need to be more proactive about shopping around. That’s the trap. When you’re tired, you stay put. And when you stay put, you often pay more.”
Mr Koch said the report brought a human dimension to the cost-of-living headlines.
“No corner of the country has been untouched by the cost-of-living crisis, but it’s playing out differently in every home,” Mr Koch said.
“People have told us they are skipping holidays, abandoning routine appointments and missing important family events, such as interstate weddings and funerals.
“In some really serious cases, people have told us they’re skipping meals, limiting showers and keeping the lights off just to stay afloat.
“By now, we’re used to costs going up, but we mustn’t lose sight of what that means: every extra dollar we spend is a dollar we no longer have.”
Mr Koch said he hoped the research would help people understand pricing trends and encourage them to seek out better deals.
“What Australians really need is the power to make better choices for themselves,” Mr Koch said.
“That starts with transparency. Insurers, energy retailers and banks need to clearly explain why prices are going up, because too often increases land without a clear reason.
“Australians shouldn’t have to dig for answers and, if the numbers don’t stack up, they should feel confident voting with their feet and switching to a better deal.”
Notes to editors
Read Compare the Market’s full Household Budget Barometer 2026 report here.
State, territory, and local data is also available for more than 40 council areas. For tailored local and demographic figures, or to request an interview with our Economic Director David Koch please contact Compare the Market’s media team.
Sarah Orr
Senior Manager – Editorial Content
0401 044 292
