Northern Territory families are struggling as the cost of living continues to rise in the lead up to Christmas, the NT's peak body for the social and community services sector says.
Soaring prices mean households have less money to spend on essential items, such as food, electricity and clothes, and treats and gifts through the festive season.
"It is tough out there, many Territorians are not on big incomes and are struggling to make ends meet," Deborah Di Natale, NT Council of Social Services (NTCOSS) chief executive, said on Wednesday.
The NT was the third most expensive jurisdiction to rent a three-bedroom house in 2022 after NSW and the ACT, according to the council's December Cost of Living report.
The average cost of a healthy food basket in remote Indigenous communities continues to rise and was 52 per cent higher on average than 12 months ago.
Fuel prices are also extremely high across the territory, with motorists outside Darwin hit by the highest prices.
Unleaded petrol was on average $2.39 per litre in Alice Springs in October, while the price of diesel has nearly doubled in regional NT from $1.35 per litre in October 2017 to $2.63 per litre in October 2022.
Overall, transport costs over the past five years, including car loan payments, registration, licensing, servicing, public transport and roadside assistance are up 27 per cent in Darwin and 34 per cent in Alice Springs.
The cost of living in Darwin - the Consumer Price Index - jumped 1.9 per cent in the three months to September, which was 0.1 per cent above the national average, according to the Australian Bureau of Statistics.
The CPI climbed 7 per cent in NT for the year to September, just short of the 8.7 per cent national inflation figure recorded by the Reserve Bank of Australia in 1990.
"The NT government is projecting a $40 billion economy and population of 300,000 in 7-8 years," Ms Di Natale said.
"If they want to keep families here, have an inclusive territory and attract new people on low to moderate incomes, they must provide incentives or it will be too expensive for key workers in retail, health nursing, hospital and other occupations to live here."
Ms Di Natale called on the federal government to increase social security, including raising Jobseeker to at least $73 per day to help recipients buy essential items.
NTCOSS said more investment was also needed in social housing to address a shortfall of 12,000 homes.
The council also called for the NT government to expand the NT Concession Scheme to include people most in need.
The NT has a population of about 246,500 people, with about 198,000 of those living in the Greater Darwin area.