Household spending rose 0.7% in December: CBA
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The news: Australian household spending increased for the 15th consecutive month in December 2025 putting the annual growth rate at 6.3%, according to de-identified payments data analysed by Commonwealth Bank.
The numbers: The spending category that increased the most was utilities which lifted 6.4% as government energy rebates expired. Food and beverage spending also saw its biggest increase since April at 1%.
Hospitality spending lifted 0.7% month on month, rising to 7.1% over the year.
The context: Commonwealth Bank head of Australian Economics Belinda Allen said the household spending insights data is “more robust than anticipated and points to a willingness to spend that exceeds our earlier forecasts”.
Allen said the spending “momentum adds to concerns the economy may be running above its speed limit, supporting our expectation for a February rate hike”.
The data is released a month ahead of the Australian Bureau of Statistics’ monthly household spending indicator for the same period.
The Reserve Bank of Australia’s monetary policy board noted at its last meeting in December that “risks of inflation has tilted to the upside” and is attentive to any potential need to raise rates.
What they said: “The Australian economy is at or above its speed limit and the RBA will be weighing up whether this momentum risks pushing inflation higher,” Allen said.
“The upcoming CPI print [on 28 January] will be critical in determining the timing of any rate hike.”
The source: CommBank’s Household Spending Insights index
