Living costs weighing on growth: RBA

The news: Australian consumers are buying less, or trading down to cheaper products as cost-of-living pressures bite, according to newly released Reserve Bank documents. The September liaison update, obtained under a Freedom of Information request, noted tourism contacts expected further softening in demand as consumers continue to tighten their belts.

The numbers: The documents suggested private sector wage growth had grown at slightly above 4% in the September quarter, similar to the prior three quarters and underpinned by cost pressures and a tight labour market.

The context: The release came on the same day Prime Minister Anthony Albanese outlined more cost-of-living support for financially struggling households, but ruled out cash handouts. On Tuesday, APRA data showed Australian households were squirrelling away money where they could. Total deposits totalled more than $1.4 trillion in November with $10.5 billion saved in that month alone. However, there are more than three million Australians living in poverty, and more than five million who were unable to afford a Christmas meal last week, according to the Australian Council of Social Services.