Rising rent and food prices impact households

Average rents rose by 0.3 per cent last month, but in annual terms, rents are running 4 per cent higher than August last year.

This is adding pressure on many households’ budgets, says Satish Ranchhod, Westpac senior economist.

He says while August’s rise in rents is not a massive increase on its own, the winter month usually has more muted rental gains.

“Landlords have been highlighting strong increases in operating costs. Many are also grappling with increases in mortgage costs and the related fall in property values.”