Finder’s Cost of Living Pressure Gauge

Finder's Cost of Living Pressure Gauge measures the financial stress experienced by Australian households.

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By

Graham Cooke

Edited by

Jason Loewenthal

Updated

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The cost of living pressure experienced by Australian households sits in the extreme range at 80%

Key takeaways

  • The Finder Cost of Living Pressure Gauge has been updated with new data covering the month of September 2026.
  • The cost of living pressure in September 2026 increased to 80%, up from 78% in the previous month.
  • For more detailed information on how we constructed this see the methodology section.
  • Please note, to incorporate all necessary data, this page is updated on the third Monday of each month.
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The Cost of Living Pressure Gauge, devised by Finder, measures the financial burden on Australian households. It integrates findings from Finder's Consumer Sentiment Tracker with official government data, providing a clear depiction of the economic challenges faced by consumers. Updated monthly, the model combines monthly and quarterly data on various aspects such as housing stress, salary projections, household debt, financial strain, savings, holiday intentions, credit card expenditure, the RBA cash rate target, property values and inflation. Presently, the Cost of Living Pressure Gauge stands in the extreme range, at 80%.

So what exactly does this look like in raw terms?

At an extreme pressure level of 80% at the end of September 2026:
  • Mortgage stress affects 62% of mortgage holders, up from 55% last month. Meanwhile, 59% of renters are experiencing rent stress, up from 56% last month.
  • Mortgage holders struggling with repayments decreased to 35% from 36% last month. Meanwhile, 42% of renters are struggling to pay rent, down from 45% last month.
  • On average, Australians have $47,740 in cash savings, up from last month's $47,487
  • 78% of Australians say they are stressed about their current financial situation.
  • The RBA's cash rate target is 4.60% as of October 2026.
  • Annual inflation was 3.9% in August 2026.
  • Australian credit card spending reached $41.2 billion in August 2026.
  • 47.7% of the total credit card balances were accumulating interest.
  • More than one in four (28%) Australians say they couldn't manage their finances without a credit card.
Comparatively, at an extreme pressure level of 81% in September 2023:
  • Mortgage stress affected 66% of mortgage holders, while 57% of renters were stressed about their rent.
  • 38% of mortgage holders had difficulty paying their mortgage, while 46% of renters struggled to pay their rent.
  • On average, Australians had $34,602 in cash savings in September 2023.
  • 75% of Australians said they were stressed about their current financial situation.
  • The cash rate target was lower at 4.10%.
  • In August 2023, Australian credit card spending totalled $34.56 billion.
  • 46.2% of the total credit card balances were accumulating interest.
  • 28% of Australians said they couldn't manage their finances without a credit card.

The September 2026 reading of 80% is up from 78% in August, keeping cost-of-living pressure in the extreme range and edging closer to the April 2023 peak of 84%. Persistent inflation, at 3.9% annually, and a cash rate of 4.60% continue to squeeze household budgets.

The latest Consumer Sentiment Tracker shows a mixed picture. Mortgage and rent stress both rose over the month, but fewer mortgage holders and renters reported struggling to make payments, while average cash savings edged up.

Still, Reserve Bank of Australia credit data shows a higher share of credit card balances accruing interest compared with the same period in 2023.
Pressure also remains well above the levels recorded through most of 2020 and 2021. More information on the methodology behind these figures is provided below.

Methodology

Finder's Cost of Living Pressure Gauge merges data from its Consumer Sentiment Tracker (CST) and the Reserve Bank of Australia (RBA). Updated monthly, it combines CST data with RBA figures, which are updated either monthly or quarterly. When specific monthly RBA data is unavailable, the preceding quarter's figures are used.

Percentage data in the gauge has a set maximum, or "ceiling", defined as 100% pressure. For example, if a survey question like "How stressed are you about your financial situation?" has an 80% ceiling, then 80% of negative responses (extremely or somewhat stressed) equates to 100% pressure. Responses exceeding this ceiling are capped at 100%. This weighting is applied proportionally. Non-CST data is converted to a percentage as described below in "Data categories explained". After calculating all data, a global weighting is assigned to each figure, as outlined in the table below. Historical pressure figures may be revised if new historical data is released.

Data categories explained

  • Mortgage/rent stress: Percentage of consumers who identify their mortgage or rent payments as a primary financial stressor.
  • Mortgage/rent struggle: Percentage of consumers who find it difficult to make their rent or mortgage payments.
  • Salary sentiment: Percentage of Australians expecting a pay rise within the next year.
  • Spend sentiment: Percentage of Australians unhappy with the amount they need to spend monthly to maintain their standard of living.
  • Household debt sentiment: Percentage of Australians who have negative feelings about the level of household debt.
  • Financial stress: Percentage of Australians who report feeling extremely or somewhat stressed about their finances.
  • Credit card dependency: Percentage of respondents relying on credit cards to manage their finances.
  • Holiday plans: Percentage of Australians intending to go on a holiday in the upcoming year.
  • Savings index: Average monthly savings as a percentage of $1,000 of income.
  • Total savings index: Average total savings as a percentage of $50,000.
  • Cash rate index: Current cash rate relative to a 5% benchmark.
  • Savings rate index: Current average savings account interest rate relative to a 5% benchmark.
  • Credit card spend index: Total credit card spending as a percentage of a $35 billion benchmark.
  • Credit card balance index: Percentage of credit card balances accruing interest.
  • Inflation index: Current inflation rate relative to a 7% benchmark.
  • Housing index: Current rate of year-on-year property price inflation relative to a 10% benchmark.
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To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
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Written by

Head of Consumer Research
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Graham Cooke is Finder’s Head of Consumer Research, overseeing data analysis on consumer spending and saving habits. He is a passionate advocate for financial literacy and consumer rights, regularly appearing on major TV networks like ABC News and 7 News, and contributing to top outlets like Yahoo Finance and Money Magazine. Graham holds a Bachelor of Science (Hons) in Physics, as well as Tier 1 and Tier 2 certifications (RG 146) that comply with ASIC standards. See full bio

Graham's expertise
Graham has written 49 Finder guides across topics including:
  • Home loans and the housing market
  • Credit cards & personal finance
  • Finder Awards
  • Retail economics & FMCG
  • Travel
  • Finder's RBA Cash Rate Survey, Consumer Sentiment Tracker, Cost of Living Pressure Gauge and Property Investment Index
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