Canberra: Rising inflation is placing an overwhelming burden on Australia’s most vulnerable households, Catholic Social Services Australia (CSSA) has warned, highlighting the human toll behind the latest economic figures. The agency’s chief executive, Jerry Nockles, described inflation as “more than just an economic statistic it is a relentless and crushing burden weighing down those already struggling to get by.”
Data from the Australian Bureau of Statistics shows the Consumer Price Index (CPI), which tracks changes in the cost of goods and services, rose by 3.8 per cent in the year ending December 2025. The increase was largely driven by soaring housing and electricity costs, which disproportionately affect low-income families and those on fixed incomes.
“Every percentage point represents families fighting to keep food on the table and a roof over their heads,” Dr. Nockles said. Housing affordability continues to deteriorate, with more than 1.2 million low-income households now spending over 30 per cent of their disposable income on rent or mortgage repayments. Meanwhile, rising electricity prices have intensified the strain, particularly on those least able to absorb these costs.
The impact of inflation is not uniform, CSSA stressed. Households already facing financial hardship experience the heaviest burden, and without urgent support, the gap between survival and despair continues to widen. Food insecurity now affects more than one in three Australian households, forcing families to make agonizing choices between essentials such as heating, nutrition, and other basic living expenses.
The Reserve Bank of Australia is scheduled to meet on February 3, with widespread speculation that interest rates may rise. While higher interest rates present an additional challenge for many households, Dr. Nockles warned that it is inflation itself that relentlessly erodes the purchasing power of those at the margins, deepening hardship and threatening basic survival.
“If inflation is not effectively addressed, the consequences will extend beyond individual families, widening social inequalities and destabilizing the broader economy,” he said. Dr. Nockles urged the Albanese Government to take decisive action to alleviate the cost-of-living pressures, advocating for policies that protect vulnerable Australians and uphold the dignity and security of all citizens.
The CSSA’s warning underscores the pressing need for coordinated government, community, and economic responses to ensure that rising costs do not push already struggling households into deeper crisis.