Australian retail spending rises 5.1% in April despite inflation pressures

The figure was up from $37.18b in April 2025.

Australian retail spending increased 5.1% year-on-year in April, with households spending $39.07b across the retail sector, according to the latest Australian Bureau of Statistics (ABS) Household Spending Indicator.

The figure was up from $37.18b in April 2025, reflecting continued consumer spending despite ongoing cost-of-living pressures and elevated interest rates.

The Australian Retail Council (ARC) said spending remained resilient, although growth eased slightly from March's stronger result.

ARC Chief Economist Glenn Fahey said higher spending continued to be driven largely by inflation rather than a significant increase in the volume of goods purchased.

“Retail spending remained resilient in annual terms in April, although year-on-year growth eased slightly from the stronger March result,” he said.

“While spending remains higher than a year ago, much of that growth continues to reflect inflation rather than a significant increase in the volume of goods being purchased," added Fahey.

Easter and school holiday spending helped support retail activity during the month, whilst uncertainty around international travel and fuel costs may have redirected some spending towards domestic purchases.

The strongest annual spending growth was recorded in other retailing, which increased 8%, followed by clothing, footwear and personal accessories at 7.4 per cent and household goods at 6.5%.

Department stores and major online retailers recorded growth of 6.1%, whilst spending at cafes, restaurants and takeaway food outlets rose 5.7%. Food retailing increased 2.4%.

Western Australia recorded the strongest retail spending growth among the major states at 6.3%, followed by South Australia (5.81%) and Queensland (5.3%). Victoria recorded the slowest growth at 3.9%.

Despite the positive spending figures, Fahey said retailers and households continue to face pressure from persistent inflation and rising business costs.

Recent ABS data showed about half of retailers reported lower revenue over the previous month, whilst two in five expect conditions to weaken further in the next four weeks.

““If inflation remains elevated through the second half of the year, it is likely to place significant pressure on household spending and retail trading conditions," Fahey said.