The saving edition - at home, at the supermarket, on power bills

Hi everyone,

Another disappointing inflation figure for January, which points to more interest rate rises. Reserve Bank Governor Michele Bullock says she doesn’t think inflation will spiral out of control, though.

I hope she’s right.

In this newsletter:

• January inflation kept heading the same way as December ... up.

• How to manage your debt when interest rates are rising.

• Be aware of these streaming services money leaks.

• How to plug the financial drain at the supermarket.

• Solar in 2026: How sunshine can slash your power bill.

December inflation figure no aberration

The December quarter inflation figure was a shocker. Some said it was an aberration. This week’s January CPI result shows December was not an outlier - and that’s worrying the Reserve Bank.

The RBA’s preferred trimmed mean inflation measure climbed to 3.4 per cent in January on an annual basis - exceeding economists’ expectations of 3.3 per cent and remaining well above the Bank’s 2–3 per cent target range.

With unemployment remaining low at 4.1 per cent, another interest rate rise looks a certainty. But the question is timing. I don’t think the RBA will move rates at its next board meeting on March 16-17. The impact of the last rate rise hasn’t washed through the economy and they’ll also want more economic data.

Having said that, a rate rise at the May RBA meeting looks almost a certainty, barring any unexpected reversals in employment or inflation.

Even after this week’s January inflation result, some lenders lifted their fixed rate loans which is an indication of future official rate rises.

Electricity was the biggest driver of the January CPI figure. Prices surged a whopping 32.2 per cent over the year as government rebates ended. Remember when these rebates were introduced? It was in the lead up to the federal election - the Government claimed they weren’t trying to manipulate the inflation figure to keep interest rates down ... Yeah, sure. The cynics have been proved right.

Rents also rose 3.9 per cent annually while new dwelling costs jumped 3.5 per cent, with builders raising prices due to increased demand and higher costs.

Imagine if changes to Capital Gains Tax concessions see investors pull out of property and the shortage of rental properties becomes even more severe? Rents will go up even further, fuelling inflation and putting more pressure on increasing interest rates.

When it comes to services inflation, medical services rose 4.2 per cent year-on-year, restaurants 3.8 per cent, takeaway food 4.1 per cent, education 5.4 per cent and childcare 11.5 per cent.

Managing your debt with rising interest rates

With interest rates on the rise again, so are your loan repayments ... and that’s a big hit on your family budget. So, now is the time to look at better managing your debt and trying to reduce your most expensive loans.

Credit card debt can be a tough burden to carry, especially when unnecessarily high interest rates continue to compound and grow the interest cost each month. Throw in a mortgage (if you have one), another credit card or two and things can quickly appear unmanageable.

If this is a bit too close to the bone, it could be time to consolidate your debt. This means bringing it all together onto the lowest possible rate and setting up a payment plan to wipe the slate clean.

You’ve got three main options:

1. Combine debts on a personal loan

The key benefit of a personal loan is that it has a set term. That means repayments are calculated so that at the end of the loan period the debt is cleared.

While you might still pay an interest rate of 8 per cent compared with 14 per cent, that’s likely to be lower than your credit card rate - and the fixed term could deliver a bigger saving by ensuring you clear the balance once and for all.

2. Transfer balances onto a low rate credit card

This is a popular option because the transferred balance often comes with an interest-free period, sometimes as long as 14 months. The key to making it work is setting up a structured repayment plan - much like you would with a personal loan - to ensure the debt is cleared within that interest-free window.

Just be aware that once that interest-free period ends, the balance will revert to the normal interest rate, so you might find yourself rolling the balance over again, which can incur costs and have credit history implications.

3. Consolidate all debts into your mortgage

If you have a mortgage and have accrued a bit of equity in the property, this approach can be a super interest saver. But, just like with credit card balance transfers, you need to have the discipline to increase mortgage repayments to clear the debt.

Picking the best option involves drawing up a budget, being honest about your self-control in spending and repayments, and then finding the best deal on offer.

The household financial leak that needs plugging

One of my favourite financial groups to follow online are the blokes from Equity Mates -Bryce Leske and Alec Renehan.

They posted an extraordinary chart showing streaming services have lifted their prices by an average of 53 per cent since 2023. Now that’s a massive hit to household budgets amid the cost-of-living crisis.

Some streaming platforms - including Apple TV+, Paramount+ and Stan Sport - have doubled their prices, lifting them by 100 per cent in just three years.

That is one enormous financial leak.

A good trick Libby and I use is that we subscribe through our iTunes account. When we run out of shows to watch on a streaming platform, and haven’t used it for a week, I cancel that service. But it still stays in the “subscriptions” section of my Apple Account which means I can easily renew at any time in the future.

In effect we rotate our streaming services regularly rather than being subscribed all the time.

Saving at the supermarket

While we’re on a roll plugging financial leaks in the household budget, let’s turn to the weekly supermarket shop.

More than half of Australians are missing out on savings by sticking with big brands, according to research by Compare the Market.

A national survey found 45 per cent of Aussies have switched to cheaper brands to manage financial stress, yet most are still leaving potential savings on the checkout counter.

Australians were most willing to switch to generic brands for medications, cleaning products, and pantry staples.

Compare the Market also examined the top 10 products Aussies were most willing to switch and found shoppers could cut up to $41 off their trolley by choosing cheaper alternatives - a saving of around 60 per cent on the shop.

Small savings of a few dollars on each product could add up to hundreds over the year. It’s worth giving the home brands a try. Often, they provide similar quality without the fancy logo and higher price tag.

By using this little hack when shopping shop each week, it could amount to an annual saving of $2,132. That’s enough for a return airfare to London!

Remember, the big brands pay a premium to be at ‘eye level’ in the aisles - the cheaper alternatives are often placed lower or higher on the shelf.

And if you prefer the taste of the well-known brands, making the switch on the items you’re not too fussy about could still help you claw back some cash.

Solar in 2026 - how sunshine can slash your power bills

From Perth to Penrith, Aussies are slapping solar panels on their roofs ... and for good reason. Electricity prices are climbing faster than a huntsman up a wall, and many households are looking for ways to rein in their power bills.

Solar systems - and increasingly, home batteries - are among the most practical solutions. Costs have come down, technology has improved, and government incentives can help soften the upfront price … for now.

Here’s what you need to know about solar and batteries in 2026.

Soaking up the sun

Our sunburnt country was made for solar. Around 4.3 million Aussie rooftops are now harnessing those powerful rays to generate electricity. There are now more panels on roofs than pools in backyards.

One in three households produce at least some of its own power and according to Clean Energy Council data, rooftop solar supplied 12.8 per cent of Australia’s electricity in the first half of 2025. By the end of the year, this had risen to 14.2 per cent.

Solar is hot right now.

But beyond sustainability, there’s another bonus: solar is cutting power bills by about $6 billion a year, or roughly $1,200–$1,500 per home (Clean Energy Australia Report 2025).

That’s more money in the pockets of everyday Aussies.

Why solar slashes your bills
Solar saves you money in a few straightforward ways:

• Generating electricity on your roof instead of buying from the grid.

• Using your own power during the day, when production is highest.

• Reducing exposure to rising electricity prices.

These days, using your own solar is the way to go. You’re better off running your home on it during the day than selling it back for peanuts and buying power again later at a higher price.

When you’re cooking dinner, running the dishwasher and heating water for evening showers, electricity is usually at its most expensive. So, it makes sense to store your solar for those times.

Which is where a battery comes in.

Powering on with a battery

A home battery (also known as a Battery Energy Storage Systems - BESS) stores solar power generated during the day, allowing you to use your own supply at night, when prices spike.

Despite the fact that they are an additional expense, batteries are becoming increasingly popular. Over 180,000 home batteries were installed in the second half of 2025 alone; that’s a four-fold increase on the same period the previous year, partly thanks to the Cheaper Home Batteries Program (more on that below).

Adding a battery to your solar set-up reduces your reliance on the grid during the most expensive part of the day.

Here’s the maths:

• Solar saves households around $1,200–$1,500 per year.

• Add a battery and you could save hundreds more - even over $1,000.

• That means a combined solar and battery system typically pays for itself in around five to eight years.

It might sound like a long time, but think of it as an investment. You’re putting money into renewable energy to deliver long-term returns.

And the good news? You can soften the upfront cost of that investment.

Incentives available in 2026
There are various government subsidies, rebates and loan options that can help you pay for rooftop solar and batteries. These are:

Federal incentives:

• Small-scale Renewable Energy Scheme (SRES): Earn Small-scale Technology Certificates (STCs) when you install solar, reducing upfront costs based on your system’s expected energy generation. Think of STCs as credits.

• Cheaper Home Batteries Program: Get an upfront discount of around 30 per cent on home batteries. Note, rebates are tapering from 1 May 2026, so earlier installations mean bigger savings.

• Community Solar Banks Program: Supports shared solar systems for households that can’t install individually, such as apartment dwellers.

State incentives:

Your state government - and sometimes your local council - may also offer additional incentives (eligibility applies), including:

• NSW: Up to $1,500 for connecting a battery to a Virtual Power Plant (VPP).

• ACT: Zero-interest loans up to $15,000 for solar and batteries.

• WA: Rebates up to $1,300 (Synergy) or $3,800 (Horizon Power), plus interest-free loans.

• VIC: Solar panel rebates and interest-free loans.

• SA: Discounts, rebates or vouchers through the Retailer Energy Productivity Scheme.

• QLD: State battery rebates have closed, but some local councils may offer support.

• TAS: Energy-efficiency loans that may include batteries as part of home upgrades.

• NT: State battery scheme closed; households rely on federal support.

Things to consider

Going solar can feel overwhelming with so many providers competing for your business.

So do a little homework before you jump in. Learn about solar systems and batteries, chat with friends who’ve already taken the plunge, and get a few quotes so you can compare properly.

It’s also worth thinking about how your household actually uses power - what your current bills look like, whether backup power matters to you, and whether your roof gets plenty of sun (or is shaded by buildings and trees).

A bit of thinking now can pay off for years to come.

In the green

Solar and batteries are smart ways to cut your power bills and protect yourself from rising electricity prices. Incentives are still on the table in 2026 - but they won’t last forever - so now’s a good time to see what you could save.

We live in the sunburnt country, after all - so we might as well make the most of it.