Household Spending Stalls as RBA Rate Hike Looms

Australia's household spending has stalled, rising just 0.1% in August according to CommBank's latest Household Spending Insights report.

The growth was largely driven by a 3.4% jump in spending at petrol stations after the removal of the fuel excise tax cut and renewed conflict in the Middle East.

The Reserve Bank (RBA) is expected to resume hiking the cash rate, with all four major banks now forecasting a 25 basis point increase to 4.6% at its September meeting.

ANZ Economist Sophia Angala noted that Governor Michele Bullock's recent parliamentary testimony pointed to upside inflation risks materialising, contributing to a decline in consumer confidence and expectations of higher interest rates.