Household spending up 3.1% in a year: ABS

The news: Australian household spending was up 3.1% in the 12 months to December, driven mostly by essential goods and services spending, ABS figures show.

The numbers: Non-discretionary spending rose 5.8%, with transport and health spending lifting 8.3% and 7.8% respectively. Non-essential spending was up 0.3% for the year, with an added boost from the Black Friday season sales in November.

The context: A high-interest, high-inflation environment has tempered appetites for non- essential spending for many consumers. This week the ABS's monthly CPI indicator showed inflation continued to cool in December, but the Reserve Bank will be waiting until the end of the month for quarterly CPI figures, which take into account a broader range of items and services inflation.