If you heard a loud, sad sigh on January 25, it was Australia groaning about another spike in inflation.

The "Not happy, Jan" moment saw the Consumer Price Index (CPI) rise 1.9% in the December 2022 quarter and 7.8% annually, according to the Australian Bureau of Statistics (ABS).

As even your granny now knows, these figures are a genuine reason to groan as they will mean further increases in already high cost-of-living expenses, to say nothing of cash rate rises, in 2023.

Yet amidst such data, as well as cautious Reserve Bank of Australia (RBA) announcements and government grapples, is there anything you and I can do to decrease inflation from the sidelines?

Or, how can we at least decrease our own household inflation?

Let's take a look.

But firstly, inflation.....

For those of us still struggling to get our heads around CPI and inflation, let's jump back to a blog we wrote on this issue in September last year.

Here's our the ABS explains CPI: "it measures household inflation and includes statistics about price change for categories of household expenditure".

Or in other words, CPI is the percentage measure of the price change in a fixed basket of goods and services.

Think everything from petrol and electricity to bread and butter.

It's also important to note that the CPI percentage measure is based on the average household expenditure by capital city households.

Finally, while CPI is often known as a cost-of-living index, technically, these two points are not the same.

While they both measure price changes in goods and services, the CPI bases such changes on a fixed basket whereas cost-of-living indexes base their figures on the minimum expenditure needed to maintain a certain standard of living.

Meanwhile, here's our the RBA explains inflation: "it's an increase in the price levels of goods and services that households buy" and "is measured as the rate of change of those prices".

We know we've probably confused you badly now but take heart and read on as we do have some encouraging news for you...!

Diving into the latest inflation data

Here's a quick rundown of the ABS' January 25 inflation data (and we warn you, they ain't pretty!):

• annual CPI inflation is now the highest since 1990
• December 2022 was the fourth consecutive quarter to experience a rise greater than any seen since the introduction of GST in 2000
• the increase for this quarter was higher than those of September and June (both 1.8%)
• the CPI's services component (everything from childcare, furnishings, appliances, and hairdressing) recorded its largest annual rise since 2008 (5.5%)

Why and where inflation is on the up

Here's what the Listing Loop team found interesting in the latest ABS data figures - and it's why we wanted to investigate whether the average person on the street can help decrease national inflation, or at the very least, their own household inflation.

The most significant price rises in the December 2022 quarter were:

• Domestic holiday travel and accommodation (up 13.3%)
• Electricity (up 8.6%)
• International holiday travel and accommodation (up 7.6%) and
• New dwelling purchases by owner-occupiers (up 1.7%)

The high annual inflation figure on services was also driven by holiday travel, meals out, and takeaway food.

Plus, the annual CPI increase of 7.8% has been driven by strong quarterly rises in food prices, petrol, and new dwelling constructions.

Added to these points is the fact that as a general rule of thumb, high inflation is most often due to high consumer demand and insufficient supply - and after COVID, we're experiencing plenty of both issues.

This is why the RBA is pushing up cash rate rises, in the hope that you and I will veer away from both spending more on low-supply details as well as borrowing money to buy a house or similarly large purchase.

Can you and I decrease inflation?

So, with all this in mind, and along with some research, here are some initial general points to consider on how you can decrease - or at least, neutralise - high inflation:

• Ensure your money is working for you
  (NB: it should be doing so even when inflation is low)
• Focus on industries that don’t suffer during high inflation times - and yes, they're out there!
• Don't be fooled by your savings accounts' rising interest rates - a 4% interest rate may sound great but with the CPI now at 7.8%, you're actually still losing 3.8%
• Think about investing in stocks such as oil, grains, metals or healthcare companies as they often enjoy success during high inflation periods

On this note, American investor and business magnate, Warren Buffett suggests investing in businesses with low capital needs that are able to maintain their earnings as well as those that can raise prices during high inflation periods

• Buy a home and don't sell it for at least a few years - house prices may rise and fall a little in the short term but they generally increase over time

Diving further into this issue - and especially based on the ABS' latest CPI data - you can help decrease inflation by doing the following:

• Negotiate a better deal on everyday details including streaming services, insurance premiums, utility and mobile phone plans, and gym memberships
• Don't forget to ask your lender about refinancing your mortgage as well
• Alternatively, cancel some of these details altogether
• Cut back on luxuries such as holidays and takeaway or restaurant outings
• Save money on fuel by walking or cycling to the shops, or using public transport, rather than driving
• Save on electricity and gas by turning off the air conditioning or heater, and taking shorter showers
• Wait awhile to renovate or update your house, thereby saving on furnishings, household equipment, and services (which saw an 8.4% annual rise) as well as labour and materials

The same goes for alcohol and tobacco (up 4.4%).

In other words, limit your wants, or, as Mr Buffett’s business partner Charlie Munger, explained it in 2004:

“One of the great defences to being worried about inflation is not having a lot of silly needs in your life”

• Finally, invest in yourself!

Diversify your skills, learn new ones, or at least keep your current skills up-to-date.

You don't necessarily have to go back to university or TAFE to do this - especially as this will cost you money - with opportunities and possibilities often available online.

But you do want to ensure your salary and your career are as inflation-proof as possible, or that you have a second option in the wings.

We’re here to help

We appreciate that it's not an easy world out there right now - but we're always happy to help with all the dramas and stressors of house buying and selling.

And if you're particularly tired of house-hunting, we've even partnered with buyer advocates who can check out homes for you and organise sales assessments and negotiations.

Our off-market and pre-market marketplace gives you VIP access to properties so you can get in first.

Just sign up at Listing Loop or download our app.