Households spend more on transport in August: Australia

Household spending was 4.8 per cent higher when compared to August last year, according to figures released today by the Australian Bureau of Statistics (ABS).

Robert Ewing, ABS head of business statistics, said: “Spending on transport made the largest contribution to the rise in August.

“Transport spending rose 17.1 per cent over the year, which is higher than the 10.9 per cent growth rate in the 12 months to July.

“Higher petrol prices, as reported in the August Monthly Consumer Price Index Indicator, as well as spending on holiday travel and public transport contributed to the rise in Transport spending.”

In addition to Transport, the overall rise in household spending compared to August last year was driven by Health (+8.0 per cent), Hotels, cafes and restaurants (+6.9 per cent), and Food (+4.4 per cent).

Spending on non-discretionary goods and services rose 9.1 per cent, while discretionary spending was flat.

Household spending rose in all states and territories in August 2023 compared to August 2022.

Western Australia recorded the largest rise in spending (+9.9 per cent), led by Transport (+22.5 per cent) and Health (+15.4 per cent).

When comparing this month to last month, spending growth rates were higher in all states and territories, except in Tasmania and the Australian Capital Territory. The Northern Territory had the largest increase in its growth rate, rising from +0.4 per cent in July to +4.8 per cent in August.