Transport costs help lift household spending 4.9% in 12 months

The news: Household spending was 4.9% higher in September than a year earlier, with Australians spending significantly more on transport, ABS figures show.

The numbers: Spending on transport (which includes petrol costs) remained high in September, increasing 18.4% over the previous year and contributing to a 9.2% increase in non-discretionary spending over the period. Food (+4.2%) and health services (+10.1%) spending also contributed to the rise. By comparison, discretionary spending only increased 0.3% over the year, as rising costs and high interest rates suppressed demand for non-essential goods and services.

The context: The spending growth was roughly in line with the August figure, following a 0.7% decrease in the year to July. Household spending increased in all states and territories compared to the same time last year, with Western Australia recording a 9.5% uptick over the 12 months.