A consumer-led spending surge after last year’s Delta-lockdowns has recouped all of the economy’s coronavirus losses, according to the latest national accounts figures.

The Australian economy expanded by 3.4 per cent through the final three months of 2021, while household spending increased by 6.3 per cent.

Australians are saving more than before the pandemic, putting aside more than 13 per cent of their pay packets.

But cost of living pressures are real - wages grew by 2.3 per cent in the year to December, while inflation’s up by 3.5 per cent in the same period.

Today on Please Explain, Bianca Hall is joined by senior economics correspondent Shane Wright.