We are getting wealthier, but you wouldn't know it

While millions are experiencing major financial stress because of rising living costs and high interest rates, Australian Bureau of Statistics figures show that property owners have seen the value of their assets increase substantially in the past year to reach more than $10.5 trillion.

Total household wealth, including superannuation, bank deposits and shares as well as housing and land, reached $15.3 trillion in the September quarter, a 7 per cent increase from a year earlier.

The wealth boost for many households from rising house prices has been an important consideration for the central bank in setting monetary policy.

While acknowledging that many households, particularly renters and those with a mortgage, are enduring a "painful squeeze" on their finances, Reserve Bank of Australia governor Michele Bullock said earlier this month that some "are benefiting from rising housing prices, substantial savings buffers and higher interest income".

Underlining this dichotomy, ABS head of finance statistics, Mish Tan, said that households deposited an extra $53 billion with the banks in the September quarter, including more than $20 billion into mortgage offset accounts and $26 billion invested in term deposits and similar high yield accounts.

Deloitte Access Economics chief economist Stephen Smith said the figures highlighted how widely varied were the circumstances households faced, even though inflation hit all.

"Those without a mortgage or fortunate enough to be in a higher income bracket may be feeling a little more positive abut things, whereas renters and people in lower income brackets will be potentially feeling like its another year which has been a struggle with cost of living, rent and those sort of issues remaining front of mind," Mr Smith said.

Spending data shows that even those flush in terms of asset wealth are feeling the pinch.

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ANZ said transaction data indicated purchases of everything but food weakened in the first 17 days of December after a spike in late November as shoppers took advantage of heavy discounting during the Black Friday sales.

The results lend support to the view of many economists that last month's splurge was driven by bargain hunters bringing forward their spending rather than representing an overall increase in household outlays.

ANZ senior economist Adelaide Timbrell said the combination of rising inflation, high interest rates and increased taxes because of bracket creep had dragged on household spending throughout the year.

Ms Timbrell said there had also been a shift in what people were prepared to spend the increasingly scarce money on, with many giving priority to discretionary services like travel, entertainment and eating out, and away from goods, delivering a disproportionate hit to retailers.