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Australia’s retail sales rise 0.9% in May, more than double expectations

The Australian Bureau of Statistics (ABS) reported that retail sales in May again exceeded expectations. Consumers are spending more money on restaurant visits and shopping centers. This indicates that demand is continuing to recover despite rising inflation and interest rates.

Retail sales rose by 0.9% in May, the fifth month in succession.

According to ABS, higher product prices in May led to an increase in retail sales, which was mainly seen in cafes, restaurants, takeaways, and food retail.

Spending on restaurant visits rose 1.5% in May, while sales at department stores increased 5.1%.

The rise in retail sales underpins the Reserve Bank of Australia’s (RBA) confidence that the consumer sector can withstand rising borrowing costs.

The RBA has raised interest rates twice since May and is expected to raise them again at its July meeting next week. It will probably raise rates by 0.50% to 1.35%.

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