The housing crisis and stubborn inflation fight isn't hitting all households equally. A generational split is starting to emerge, with baby boomers and older Australians less likely to be impacted by the cost-of-living crisis
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00:00In Victoria's high country, baby boomers like Murray and his wife are enjoying their ski holiday.
00:09What they can't escape is a growing generational gap in spending.
00:14The older people have the money to spend and the younger people are finding it a bit tough.
00:19Boomers born between 1946 and 1964 are more likely to have paid off their housing,
00:26putting them in a good financial position, while inflation, rising rents and interest rate fuelled mortgage repayments
00:33have put younger generations under considerable pressure.
00:37The numbers that they've got now compared to when we had our mortgages, it's just astronomical.
00:42Ski store owner Paddy Hoy sees the gap when the time comes to settle the bill.
00:48We have grandparents coming and they're throwing their credit cards across our counter,
00:53whereas in the past it was generally more spread out throughout the family.
00:57Data from the anonymised accounts of 7 million Commonwealth Bank customers
01:02reveal the spending of people aged below 59 has either fallen or risen by less than inflation.
01:09But those aged 60 or above are splashing out, more than what prices have increased by.
01:16You can't blame the boomers, as so many people like to do,
01:20for perhaps demand running a little bit hotter than the Reserve Bank would like.
01:25That's because younger generations spend more overall, as they buy houses and raise children.
01:31It's just tough to be young and it always has been.
01:35For people with assets, superannuation and bank deposits, rising interest rates have sent more money their way.
01:42Are you saying you cause inflation?
01:44Well, spending money, yeah.
01:46We know that monetary policy is a blunt instrument and the impact is being felt unevenly across society.
01:53But with higher interest rates seemingly here to stay, that disparity is only going to get wider.
01:59A growing divide across generations.