Household spending growth slowed in October: ABS

The news: Household spending was 2.7% higher in the year to October than the previous year, but spending growth continues to trend downwards as households tighten belts amid living cost pressures.

The numbers: The 2.7% figure followed a 5.2% reading in the year to August and 4.3% in the year to September. The main drivers of household spending rises were increases in transport (+13.4%), health (+10.8%), and alcohol and tobacco (+7.1%). Household spending rose in all states and territories compared to the same time last year.

The context: The high-inflation, high-interest rate environment continues to pressure Australian household budgets. Analysts expect the Reserve Bank to keep the cash rate on hold at 4.35% this afternoon, but governor Michele Bullock has warned rates could remain high for some time, due to "home-grown" inflation pressures and sticky services inflation.

What they said: "Less spending on discretionary services such as eating out, accommodation, and recreation and cultural services all contributed to the slowdown," ABS head of business statistics Robert Ewing said in a statement.