Living standards are set to slide in the first half of 2026 as inflation eats away at incomes and households pull back on non-essential spending, with economists warning Australia could see the weakest GDP growth since the early 1990s if war in the Middle East drags on.
National Australia Bank economists Taylor Nugent and Gareth Spence expect real household income per person to fall around 0.7 per cent over the first half of 2026, as a result of higher fuel costs and associated price rises.
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