Christmas is approaching, and household finances are a concern for many Australians. 65% are concerned about the impact of the latest interest rate rise, while 53% plan to spend less this Christmas.
Based on a survey of 1,031 Australians conducted in September 2026, Voice of Australia: Rates up, spending down explores what people think is driving inflation, where they are cutting back and how higher interest rates are shaping their household spending and financial outlook.
Government spending leads perceived inflation drivers
When asked what they think is driving inflation, 36% pointed to government spending, making it the most commonly cited factor. This was followed by higher oil and energy prices (20%), global economic pressures (16%) and housing costs (8%).
Eating out and takeaway top the spending cutbacks
Eating out and takeaway are the areas people are cutting back on most, with 47% of Australians reducing spending in this category. Other areas include:
- Entertainment: 34%
- Clothing and non-essential shopping: 29%
- Holidays and travel: 24%
Christmas budgets are also feeling the squeeze, with 53% planning to spend less this festive season due to higher interest rates.
Australians are divided on their household financial outlook
Confidence in household finances is mixed. While 34% of Australians feel confident about their household financial outlook, 38% are not confident, and 26% are neutral.
What this means for brands
The findings highlight widespread concern over household finances, with Australians cutting back on dining, entertainment, shopping and travel, and more than half planning to reduce their Christmas spending.
For retailers and consumer-facing brands, understanding where consumers are cutting back can help inform their offers and messaging.
The infographic below represents key findings from our research:
Based on a Pureprofile AU survey, September 2026. N=1,031.
