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Cost of living growing faster than basic inflation

Increases in the costs of living are soon set to outpace inflation, according to recent reports from the Australian Bureau of Statistics (ABS).

In June 2011 market fluctuations in certain product categories has seen "employee" households suffer an increase in the prices of food and petrol, with luxury goods such as alcohol also rising.

The cost of housing - not including the actual purchase of dwellings - also increased by 0.5 per cent for employee households.

According to the ABS this means that the average family unit will be under increased pressure to buy basic goods, as their costs of living rise by as much as 4.5 per cent in a single quarter.

Other factors involved in the calculation of these figures were the average household expenditure on basic commodities such as fruit, milk, electricity prices and rental payments.

This could be a problem for retail firms as the increases have not been matched by proportionate changes in the average wage level - leaving people with less money to spend on luxury items.

When combined with already lowered levels of consumer confidence and decreases in retailer profits, this result could have an impact on the industry sector concerned with property management programs.

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