Household spending growth continued to slow in June quarter

The concern we have is that the real growth in household spending isn’t softening fast enough to give enough comfort to the RBA Board that current contractionary levels of the cash rate are sufficient to weaken core inflation, writes KPMG Australia Chief Economist Brendan Rynne.

Household spending growth continued to slow in the June quarter, lifting by 0.7 per cent, down on the 0.8 per cent lift in the March quarter. The data shows a slight pullback in demand during the June quarter, which will be well received by the Reserve Bank of Australia in their August board meeting next week. However, the challenge with interpreting this quarter's data is how the reduction in the fuel excise charges have contributed to spending changes towards more discretionary items. Th...

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Authors: Brendan Rynne

Published Date: 06 August 2026