Australian living costs increased in Q1 2025, with government payment recipients hit hardest.

Australian households saw a rise in living costs during the March 2025 quarter, with government payment recipients facing the highest increase of 1.6%, due to higher health costs and changes in Medicare and Pharmaceutical Benefits Scheme thresholds. All household types experienced cost increases ranging from 0.6% to 1.6%, influenced by factors like mortgage charges, education fees, and food prices. Employee households saw a 1.1% rise, while self-funded retirees faced the smallest increase.