Australian household spending rises 1.1% in July

• Australian household spending rose by 1.1% in July, marking the third consecutive month of growth.
• Annual nominal spending climbed 7% compared to July 2025, reaching its highest growth rate since June 2023.
• Increased spending across culture, food, hospitality, health, and higher fuel prices following excise duty adjustments drove the overall monthly gain.

Australian household spending grew by 1.1% in July, driven by higher consumer demand in discretionary and essential categories according to figures from the Australian Bureau of Statistics (ABS).

The latest increase follows seasonally adjusted gains of 1% in June and 1.2% in May.

"This was the third consecutive monthly rise in household spending, led by recreation and culture; food; hotels, cafes and restaurants; and health," said ABS Head of Business Statistics Tom Lay.

Higher prices for food, catering services, pharmaceuticals, and fuel contributed directly to the monthly increase, alongside a 1.5% rise in recreational activities like major sporting events.

The Australian Bureau of Statistics noted that annual household spending growth reached 7% in nominal terms compared to the same period last year.

A 16-cent per litre fuel excise duty increase on 1 July pushed nominal fuel spending up by 2.2% for the month.

Experimental data indicated that the actual volume of fuel consumed fell 4.7% in July after climbing 7.9% in June.