ABS statistics found that spending is declining on clothing, liquor, and furniture, whereas spending is up on food compared to last year. Overall, total retail turnover increased by 0.6% due to spending on sales and promotions ahead of the end of the financial year, but given prices have increased by more than this, then overall consumption is down. Retailers are reporting that consumers are looking for discounts and bargains before they spend money on cars, clothing, household goods, and appliances.
The figures for quarter to June inflation will be released on July 31st, and this will be keenly watched as April (3.6%) and May (4%) have seen inflation rise once again, prompting fears of further interest rate increases by the Reserve Bank of Australia with their mandate to use interest rates to attempt to keep inflation within their target of 2-3%.
