Despite the rise in the retail sector, the pace appears to be to slowing, after the ABS reported a 0.6% rise in August and a 1.3% rise in July.

Ben Dorber, ABS head of retail statistics said this month’s rise was again driven by the combined strength in the food industries.

"Food retailing rose 1.0%, while cafes, restaurants, and takeaway food services rose 1.3%," Mr Dorber said.

"Many retailers remained open for the National Day of Mourning, an additional one-off public holiday in September, and this boosted spending on food, alcohol and dining out."

This comes as households prepare for the seventh month of interest rate hikes as the RBA Board meets on Tuesday.

The rise in retail spending exceeded predictions from ANZ economists, who forecast a 0.4% rise; the figure was also slightly ahead of predictions from Westpac economists, who forecast 0.5%.

The largest percentage rise was reported across the clothing, footwear and personal accessories sectors - up 2.0% following a large fall of 2.3% in August 2022, other retailing also rose 0.2%.

The largest rise in September 2022 was reported in the Australian Capital Territory (up 1.6%), followed by Western Australia (up 1.4%), Queensland (up 1.1%), the Northern Territory (up 1.1%), Tasmania (up 0.9%), Victoria (up 0.4%) and finally New South Wales (up 0.3%).

South Australia was the only state or territory to buck the trend, reporting a fall of 0.2% - the first drop in six months after five consecutive rises.

Mr Dorber said the latest Consumer Price Index showed that prices continued to rise strongly in the September quarter.

A 0.8% fall was reported across household goods, a slight decrease after last month's significant 2.6% rise - as department stores also saw a 0.4% drop.

The fall is the fourth monthly fall in household goods retailing in the last six months, which the ABS noted was softened by the release of new mobile phone models.


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