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’ list of worries for more than two years, opinion polls show.

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 those who are university-educated (38 per cent) and have a job (36 per cent) were optimistic their finances would improve over the coming year, according to the Dye & Durham Australian Market Pulse, a quarterly survey of economic trends conducted by pollster Resolve Strategic. The proportion expecting an interest-rate increase this year fell from 48 per cent in June to 35 per cent in October.

“The survey shows the personal financial situations for a growing number of Australians have been steadily improving since last December,” said Dennis Barnhart, managing director of Dye & Durham Australia, a legal technology company.

Those on low and fixed incomes were more pessimistic – only 12 per cent of retirees expect their finances to improve in 12 months.

A separate survey released by National Australia Bank this month also showed cost-of-living pressure beginning to abate. The proportion of households reporting “very high” cost-of-living stress fell to 29 per cent during the last quarter, down from a nine-year high of 33 per cent last year.