Australian retail sales rose 4.8% year-on-year in February 2026. Growth has softened a little, reflecting soft growth in food & liquor and a slowdown in household goods. Growth in dining out and online retail remain above trend, suggesting consumers took the February rate hike in their stride. The starting point for the slowdown in retail sales is reasonably strong and we may see March growth at 3%-4% overall following higher petrol prices. A return to sales growth near 4% is our view and more consistent with a neutral cash rate backdrop.