Council rates up 18%, electricity bills up 15% — so where exactly has inflation gone down? — Sydney auction clearance rate hits 74%

Week’s Key Focus

Latest data shows Australia’s core inflation has dropped to 2.7%, falling back within the Reserve Bank’s target range of 2%–3% for the first time since December 2021. On paper, that sounds like good news. But for many households, it doesn’t feel that way — with rising council rates, electricity bills, and insurance premiums, people are asking: “If inflation’s falling, why are my bills still going up?”

The answer lies in how inflation is measured. The official figure is based on the “trimmed mean” — a method that excludes the top and bottom 15% of price changes to smooth out extreme volatility. But in reality, we’re facing a wave of concentrated price hikes. From July 1, electricity prices rose, council rate notices landed, and insurance renewals came in higher than before. Ironically, many of these costs were likely among those trimmed out of the inflation figure — no wonder people aren’t feeling the relief.

The pressure on household budgets is real. Health expenses are up 4.1% year-on-year, food prices up 3%, and insurance costs up 3.1%. While lower transport costs offer some relief, the overall sense remains: everything feels more expensive. What’s more, inflation data is backward-looking — it reflects the average cost movement of the last financial year, while consumers are already grappling with price rises in the new one.

So what can you do? One reader shared his smart strategy: instead of passively accepting a 9%–12% hike in energy bills, he called around and negotiated. The result? His electricity bill only rose by 1.17%, gas prices actually fell by 1.39%, and he received $100 credit per account from his provider. His tip? “If you don’t ask, you don’t get.”With the new financial year underway, it’s the perfect time to give your expenses a health check: review your energy plans, insurance, subscriptions, and mortgage rates. A little time spent comparing, negotiating, and switching could be the best way to actually feel like inflation is easing.

Auction Results Last Week

Sydney: 704 properties were scheduled for auction, with 457 results reported and 336 sold, delivering a clearance rate of 74%. The total auction value reached $394,589,126, and the median house price was $1,523,250.
Melbourne: 733 properties were scheduled for auction, with 521 results reported and 371 sold, resulting in a clearance rate of 71%. The total auction value came to $300,958,838, and the median house price was $880,500.