Australian Retail Food Sales Rose Despite Higher Interest Rates

Australia 01.10.2026

Australian retail turnover reached $39.36 billion in August, up 5.3% from a year earlier and 0.5% from July. Food sales rose 4.1% annually to $15.63 billion, while dairy price inflation eased from the previous month.

Australian Retail Food Sales Rose Despite Higher Interest Rates

Retail turnover in Australia increased to $39.36 billion in August, according to the source data. The result represented annual growth of 5.3% and a monthly increase of 0.5%.

Food accounted for $15.63 billion of spending across retail channels. Food revenues grew 4.1% from a year earlier, exceeding the prevailing headline consumer-price inflation rate during the period.

Performance differed between food outlets. Commercial foodservice recorded annual growth of 6.6%, while conventional grocery sales increased by 2.6% over the same period.

Australia’s headline inflation rate rose to 4.0% in August from 3.5% in July. Higher housing and fuel-transport costs contributed to the increase in the broader consumer-price index.

Dairy prices in retail also remained high by historical standards, although dairy price inflation softened compared with July. The data covered products sold through refrigerated retail cabinets.

The Reserve Bank of Australia had raised its official cash-rate target to 4.6%, its fourth increase of the year. The rate was described as a 15-year borrowing high and was intended to moderate persistent energy costs. Trimmed-mean inflation remained at 3.6% for a third consecutive month.