Not all categories strengthened. Utilities recorded the steepest decline, falling 3.9%, driven by seasonal volatility. Education and transport spending also eased, partly reflecting bill payment timing and lower petrol prices.
CommBank expects spending growth to slow further in the second half of 2026 as higher borrowing costs and ongoing inflation continue to pressure household budgets.
“The RBA held the cash rate steady in June but remains willing to hike again if inflation proves more persistent than expected,” Allen said. “The RBA acknowledged that consumer spending was slowing. We continue to expect the RBA to remain on hold for the remainder of 2026 and expect two rate cuts in 2027 based on our economic outlook.”
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