Australians are holding back on spending, except on beer or wine

Households might be holding back on their spending, but there’s one thing Australians have been happy to splash out on recently: booze.

New ABS data released this morning showed spending growth was essentially flat in April, rising by just 0.1 per cent for the month, it fell 1.2 when only goods were considered.

But while households are clearly still keeping their belts tight after years of high inflation and interest rate rises, they’ve been happy to spend more on alcohol recently.

A survey by comparison site Canstar Blue found Australians are spending $77 on wine every month, on average, an increase of 17 per cent from the same time last year, when the figure was sitting at $66.

The jump in beer spending has been even steeper: up 30 per cent, going from $76 to $99.

That’s well in excess of inflation, as the average price of beer rose a far more modest 4.5 per cent in the 12 months to March.

“The Easter holidays helped pick up spending slightly for the month of April, but these latest figures show households chose to spend more on experiences than on discretionary items, like clothing and footwear,” Canstar Blue spokesperson Eden Radford said.

“Despite spending on alcoholic beverages and tobacco falling for the month, Canstar Blue research shows average monthly spending specifically on wine and beer has increased over the last year, with survey data showing $99 for beer and $77 for wine.

“If this month’s figures are anything to go by, households will continue to keep a close eye on their budgets, with many likely holding out for big sale seasons or tax returns, before making any big purchases.”

Yesterday’s relatively weak GDP figures have fuelled expectations that the Reserve Bank will reduce interest rates again when it next meets in July, with the market now pricing in an 86 per cent chance of a cut, up from 81 per cent on Tuesday.