It’s the news we’ve all been waiting for: Australia’s cost-of-living squeeze is finally easing as fewer consumers report they are under acute financial stress and a growing share expect their household budgets to improve in the year ahead.

Cost-of-living pressures caused by elevated inflation and higher interest rates have been at the top of voters’ worry list for more than two years, opinion polls show.

A growing share of consumers expect their personal finances to improve in the year ahead.Credit: Steven Siewert

But consumers are gradually becoming more optimistic about the economy and the health of their personal finances.

A new survey shows 30 per cent of respondents now believe their financial position will improve in 12 months – up from 24 per cent a year ago.

An above-average share of the university-educated (38 per cent) and those with jobs (36 per cent) were optimistic their finances........

© The Age