Australian household spending flat in August after three months of growth

  • Australian household spending was unchanged at A$82.3 billion in August 2026.
  • 6.8% was the annual spending increase, below July’s 7.0% pace.
  • The Reserve Bank of Australia was expected to raise interest rates for a fourth time in 2026.

Australian household spending was unchanged month-on-month at A$82.3 billion ($57.71 billion) in August 2026, ending three consecutive months of growth after a 1.1% increase in July. Analysts had expected a 0.3% rise. Households cut spending on food, alcohol and tobacco, clothing, furnishings, health and recreation, while transport spending increased, including higher fuel purchases. Transport rose 2.3%, hotels, cafes and restaurants increased 0.8%, and miscellaneous goods and services climbed 0.3%. Spending increased in New South Wales, Queensland, South Australia and the Northern Territory, but fell in Victoria, Western Australia, Tasmania and the Australian Capital Territory. Annual spending growth remained 6.8%, down from 7.0% in July, indicating resilience despite higher borrowing costs and supporting expectations that the Reserve Bank of Australia would raise interest rates for a fourth time in 2026.

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