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.


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (< $250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
010000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Saver Account (<$250k)

    4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace

    Savings Account (Amounts < $250k)

    • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
    • No withdrawal notice periods or interest rate penalties
    • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
    000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
    *Rate varies on savings amount
    • Deposit $500 per month to get bonus interest
    • 5.50% p.a. available on total savings up to $100k.
    • 5.00% p.a. applies to savings between $100k-250K.
    • Tiered bonus rates apply. (TMDs at ubank.com.au)
    *Rate varies on savings amount

    Save Account (>$100,000)

    • Deposit $500 per month to get bonus interest
    • 5.50% p.a. available on total savings up to $100k.
    • 5.00% p.a. applies to savings between $100k-250K.
    • Tiered bonus rates apply. (TMDs at ubank.com.au)
    Important Information and Comparison Rate Warning

    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of July 22, 2024. View disclaimer.

    Image by Brett Stone via Pexels.