Like many other workers in the country, Ira, a casual worker, is finding it increasingly difficult to find a means of living.

“The cost of living simply does not apply to unemployed and homeless people,” she said.

“It affects people who work, and I work and it’s not enough.

“This is no longer enough.”

Ira, who asked that her last name not be used, said the issue of food insecurity is a “huge problem.”

Ira wasn’t the only one struggling with cost of living issues.

A recent survey of 1,500 charities by national food aid organisation OzHarvest found that 67 per cent of respondents are unable to meet current demand for services.

The charities also said 30 per cent of their clients were seeking help for the first time.

Reserve Bank of Australia Governor Michele Bullock said yesterday that more people than usual had turned to community organisations for help as Australia’s economy slowed.

Her comments came a day after Australian Bureau of Statistics (ABS) data showed the Australian economy was growing at its slowest rate since 1991, excluding the COVID-19 pandemic, as households cut back on spending.

The ABS also said food spending fell by 1 per cent in the second quarter as households began to substitute cheaper options to reduce their grocery spending.

“Sign of the Times”

To keep himself fed, Ira turned to Adelaide’s first free supermarket, joining hundreds of people who have passed through its doors since it opened a few weeks ago.

The supermarket chain runs OzHarvest and its South African manager, Rachel Hibble, said the number of customers using the service had doubled as expected.

Ms Hibble said that “large parts of society who were previously doing well are now struggling to meet their basic needs”.

“It’s a true sign of the times of food insecurity, and it’s reaching every corner of the community — we see young craftsmen, people in suits coming back from day jobs, single parents trying to make ends meet, families with children, everyone you could imagine,” she said.

OzHarvest founder Ronni Kahn said she had never seen so much interest in the charity.

“If you have to choose between paying rent, healthcare, fuel, IT, education – food is the easiest thing to give up first and that’s what we’re hearing and seeing in our free supermarkets across the country,” she said.

“It gets worse before it gets better”

Susan Stone, chair of the University of South Australia’s economics department, said tax cuts in this year’s federal budget meant households “could start to recover” – but that potentially wouldn’t happen before another “downturn”.

“There is a big lag between the time we see the numbers, the time those numbers are reported, and the time people start to feel relief,” Dr. Stone said.

“We could see the numbers that come out in September be… maybe even a bigger decline before we see things start to pick up and improve later in the year or in 2025.”

Dr. Stone said there is anecdotal evidence that the federal tax cuts have increased household savings rather than spending, which she said is a “good thing” and will provide consumers with “the buffer they need.”

“We need to make sure that prices stabilize so that businesses can make long-term plans and consumers can spend with the confidence that they will not get into any financial difficulties because of their purchases,” she said.

Federal Finance Minister Katy Gallagher has admitted household budgets have been “crushed” by repeated interest rate rises and are under “enormous pressure”.

“There’s no doubt we’ve felt the pain and household budgets have felt the pain,” she told RN Breakfast on Thursday.

However, she added that the government was committed to providing “targeted” support to households without exacerbating inflation.

OzHarvest said that regardless of the overall situation, charities will continue to work around the clock at a local level.

“There is strength in the community coming together to support each other, and at this time they are looking outside for extended support to help them survive,” Ms Hibble said.