Paying more for groceries, bills, rent and other expenses is keeping consumer spirits low and denting the Labor government's standing with voters.
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Consumer confidence has been stuck well below pre-pandemic averages, declining a little further last week as seen in ANZ and Roy Morgan's survey.
Inflation and higher interest rates are largely responsible and remain top of mind for voters, the latest Resolve poll of 1600 voters published in Nine newspapers on Tuesday shows.
The government's primary vote remains at 28 per cent, against a rise for the coalition to 38 per cent, from 36 per cent.
The cost of living remains the top voter concern, with 53 per cent saying it was their highest priority, ahead of housing and rental affordability (12 per cent) and crime (seven per cent).
Voters were split on how they felt about personal finances, with 30 per cent saying they were earning less than they were spending, 38 per cent earning the same as they were spending and 27 per cent saying they were earning more than they were spending.
Asked about the federal leaders, 35 per cent of respondents nominated Opposition Leader Peter Dutton as their preferred prime minister while 34 per cent stumped for Anthony Albanese.
The government has already offered voters tax cuts and energy bill relief to ease cost-of-living pressures.
Treasurer Jim Chalmers also flagged on Monday that there would be more help in future federal budgets.
But with still-high inflation eating into household budgets, many Australians are feeling the pain of higher prices for petrol and groceries.
ANZ economist Madeline Dunk said consumers were particularly uncertain if now was the time to splash out on a major household item, the weekly survey showed.
Households were also "very concerned" about their current financial position, she said.
The overall consumer confidence index slid 0.5 points to 78.5 points, which is well below the 110.4 monthly average since 1990.
Rising rents have hit tenants particularly hard but green shoots are starting to appear, with SQM Research reporting a rise in the number of vacant rental properties nationwide.
Vacancy rates are now sitting at 1.3 per cent, with capital city rents lifting just 0.1 per cent in the 30 days until July 12.
Research director at the firm, Louis Christopher, said most rental markets were still experiencing severe shortages and most were not expected to materially soften for some years.
"However, much of the structural rental shortage has now been priced into the rental market and so I do believe the days of 10-20 per cent plus annual rental increases have come to an end," he said.
Australian Associated Press
