People upset with house rent in Australia, students forced to sleep in tents

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Australia is facing the brunt of inflation these days. The people of the country are most troubled by the increasing rent. Meanwhile, Australian consumers are being forced to cut back on everyday spending. Meanwhile, reports claim that Australia’s major supermarkets have increased profit margins during the pandemic, leading to a rise in inflation.

What is the new crisis in Australia?

Australians are in the grip of high inflation these days. Australians aged 30-34 and those who rent their homes are the most affected by rising housing costs. According to a report, according to inflation, the expenditure on essential things is increasing. Australian consumers are being forced to spend less in everyday spending areas. On the other hand, travel and accommodation expenses have increased by over 39 per cent in January-March as compared to the same period last year.

The report found wide variation in spending patterns by age group. While older Australians are increasing spending, younger consumers are cutting back. Only 3.4 percent of annual spending is done by people under the age of 35. This is almost half of what people over the age of 35 spend. Australians aged 25-29 spend the least. For Australians aged 18-24 their average spending has also increased.

the crisis is serious

The housing and rental crisis is affecting international students studying at Australian universities the most. Many international students are at serious risk of poverty, poor health and homelessness. Joe Jiang, 27, from China said he pays $300 a week to sleep in a tent inside a hostel. In Perth, 27-year-old Sherlyn from Zimbabwe said she was forced to sleep in a homeless shelter for two weeks with 30 other people.

What is the reason for the whole crisis?

Australia’s major supermarkets have increased profit margins by several percentage points during the pandemic, which has fueled inflation. An analysis of the financial accounts of Coles and Woolworths over a five-year period shows that the big supermarkets have used the pandemic not only to sell more goods, but also to boost sales turnover.

Coles said the increased margin was due to savings in other areas, while Woolworths said inflation was driven by higher wholesale prices paid to suppliers. However, the supermarket sector’s rising profit margins suggest it is charging shoppers more to cover other rising business costs, such as overhead and energy bills.