Catholic Social Services Australia says that while the latest inflation figures have sparked renewed commentary, it is vital to recognise the immediate and severe impact rising prices have on Australia’s most vulnerable communities.
“Inflation is more than just an economic statistic – it is a relentless and crushing burden weighing down on those already struggling to get by,” Catholic Social Services Australia chief executive Jerry Nockles said.
The Consumer Price Index (CPI), which measures the average change in prices paid by consumers for goods and services, rose by 3.8 per cent in the year to December 2025, according to Australian Bureau of Statistics data released yesterday.
This increase was driven mainly by soaring housing and electricity costs.
“Behind every percentage point is a family trying to keep food on the table and a roof over their heads,” Dr Nockles said.
Housing affordability continues to worsen, with over 1.2 million low-income households spending more than 30 per cent of their disposable income on housing.
Electricity prices have surged over the past year, hitting those least able to absorb the shock the hardest.
Inflation’s impact is not evenly spread. “Those already facing financial hardship bear the heaviest burden,” Dr Nockles said. “Without urgent support, the gap between survival and despair grows wider every day.”
Food insecurity affects more than one in three Australian households, placing extra pressure on community services and support networks. Many families are forced to make difficult choices between essential needs such as heating, food, and other basic living expenses.
The Reserve Bank of Australia is set to meet on February 3 amid widespread expectations of an interest rate increase.
“Interest rate increases are undeniably a serious challenge for many households, often forcing tough financial decisions,” Dr Nockles said.
“Yet, it is inflation that hits the most vulnerable cruelly and relentlessly every day, deepening hardship and threatening their very ability to survive.
“If inflation is not effectively managed, the consequences risk deepening economic hardship for individuals and families, while also exacerbating broader social inequalities and undermining economic stability.”
Dr Nockles called on the Albanese Government to confront the cost-of-living crisis head-on by prioritising policies that ease the burden on vulnerable families and uphold the dignity and security of all Australians.
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Australia’s disadvantaged face crushing weight of rising inflation (CSSA)
