Australian retail sales hit a new record in the June quarter despite higher prices across the industry despite high inflation.
according to Australian Bureau of Statistics (ABS), retail sales rose 1.4% to about $94.3 billion (US$65.6 billion) in the three months to June 2021, up 1% in the March quarter and 7.7% in the December quarter This was followed by three consecutive quarters of increase. .
“Despite the biggest retail price increase since the introduction of GST in 2000, sales volumes were down in the June quarter, despite price increases of 1.7% in June and 1.8% in March. continued to increase until Ben Dover saidHead of Retail Statistics for ABS.
Retail sales growth in the June quarter increased 8.6% over the period, led by sales in the cafes, restaurants and takeaway food service categories.
Clothing, footwear, personal effects retail and department store retail also posted solid gains of 3.9% and 3% respectively.
“The top three retail industries in the June quarter have all been hit hard during lockdown,” Dover said.
“They all continue to recover quickly as we have returned to more normal trading conditions since Delta’s lockdown ended.”
Additionally, other retail grew for the eighth straight quarter, increasing 1.2% in the June quarter.
Decline in household goods and food retail sales
Two industries reported lower sales in the June quarter. Household goods retailers were down 1.8%, while food retailers were down 0.8%.
“Cost of living pressures and rising interest rates appear to be further squeezing home goods retail sales volumes.
ANZ Economist Higher inflation and higher interest rates will inevitably slow down consumer spending growth, but large household savings buffers and robust labor market conditions could delay and mitigate the negative impact on consumption. It is highly likely.
Among the jurisdictions, Queensland recorded the largest increase in retail sales volume at 2.4%, followed by Tasmania at 2%, Western and South Australia at 1.3%, Victoria at 1.2%, New South Wales was 1.1%.
In contrast, retail sales volumes in the Australian Capital Territory remained the same, while the Northern Territory fell by 0.2%, its third straight quarter of decline.