Australian household spending rose modestly in August, with the Australian Bureau of Statistics (ABS) reporting a 0.1% increase on Thursday.
The gain was smaller than the 0.4% and 0.5% rises recorded in June and July, but extended a run of four consecutive monthly increases.
For the year, data showed spending was 5% higher than in August 2024.
Lauren Binns, ABS head of business statistics, said: “The small rise in August was the fourth increase in a row, and spending has risen in 10 of the last 12 months. Through the year growth remained elevated. Household spending was 5.0 per cent higher than the same time last year.
"Households spent more on booking airline travel and accommodation services during August. This contributed to a 0.5 per cent rise for Services spending. In contrast, Goods spending fell 0.2 per cent.”
The release comes two days after the Reserve Bank of Australia (RBA) left the cash rate unchanged, as policymakers weighed the risks of inflationary pressures returning.
The concern was underscored by August’s consumer price inflation (CPI) data, which revealed headline inflation climbed to an annualised 3% – its highest level in over a year.
At the same time, the RBA highlighted that household budget pressures are easing. In its latest Financial Stability Review, the central bank noted household cash flows have improved as inflation has moderated and interest rates have declined.
Real disposable income per capita has steadily risen in recent quarters, now sitting slightly above pre-pandemic levels.
Mortgage repayments have fallen following three cash rate cuts in 2025, although they remain higher as a proportion of disposable income than before the pandemic.
The RBA also reported that many households are continuing to build financial buffers, with additional funds flowing into offset and redraw accounts.
