Business News Asia
According to the Australian Bureau of Statistics (ABS), retail sales fell in October for the first time this year. Rising inflation and interest rates have impacted consumer spending. Australian retail sales fell for the first time since December 2021, reflecting increasing pressure on household spending.
According to the ABS, retail sales fell by 0.2% in October. This was contrary to expectations of a 0.5% increase and worse than the 0.6% rise in September.
The consumer price index (CPI) rose to a 32-year high in the third quarter, while the Reserve Bank of Australia’s (RBA) key interest rate hit a nine-year high.
Retail spending fell sharply in October in all sectors except fresh food, according to the ABS. The sharpest decline was in department store sales. Spending at restaurants and food delivery services fell for the first time since January.
At its November 1 meeting, the Reserve Bank of Australia (RBA) raised its key interest rate by 0.25% to 2.85%, marking the seventh consecutive increase in the policy rate to curb inflation in the country.