Australians appear to have gone on a food binge according to the latest retail sales figures for October. Increased spending on food in cafes and restaurants, as well as food items purchased from supermarkets, grocery stores and convenience stores, accounted for around three-quarters of the overall increase in total retail sales during the month.
Total retail sales (seasonally adjusted) increased by 0.5% in October, after rising by 0.1% (revised up from 0.0%) in September. On a year-on-year basis, sales grew by 1.8%, up from the 1.5% annual rate recorded in September. These latest figures put an end to the string of months in which the annual growth rate has fallen.
The figures were more than the 0.3% increase which was expected and bond yields and the Aussie dollar jumped on the news. 3 year bonds ended the day up 7bps at 2.03% while 10 year bonds finished 6bps higher at 2.62%. The local currency jumped from just above 76 U.S cents to as high as 76.55 U.S. cents before easing back to around 76.40 U.S cents.