10 Jun 2010

Start budgeting now for higher cost of living - commission

10:45 pm on 10 June 2010

The Retirement Commission says the cost of living is going up significantly and people need to start budgeting now.

This Reserve Bank has raised the Official Cash Rate by 0.25 of a percentage point to 2.75%.

The commission says a series of price rises is looming in the next six months and people, especially home owners, need to prepare or revisit their budgets.

It says people should start preparing now if they want to be in control of their household finances.

The commission says people will be hit by costs from the Emissions Trading Scheme which takes effect from 1 July and an increase in the GST from 1 October. It says mortgages may go up, too.