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Retail sales for December 2022

First signs of slowdown emerging

06 February 2023

Australian retail sales data for December 2022 shows strong overall growth but increasing dispersion across categories. Both supermarkets and cafes & restaurants did well. Department stores also had a strong month. Household goods were weak, especially given the level of price inflation. Additional disclosure from ABS on volumes, shows that 80% of the strong December quarter for retail growth came from price inflation. The timeline of price inflation fading will have a significant bearing on the slowdown in retail in 2023 and adds to near-term risks in household goods but should result in stronger sales in food categories for this calendar year.

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