Shoppers are cutting back their spending at supermarkets, bakeries and butchers to cope with soaring insurance and education costs as household spending continues to slump.

Commonwealth Bank chief Economist Stephen Halmarick told Julie-anne Sprague on 6PR Afternoons there was quite a bit of spending disparity between higher and lower earners.

“We can see the areas renters are cutting back on, for instance: recreation, hospitality, food and beverages and household services,” Mr Halmarick said.

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