Data from the Australian Bureau of Statistics showed retail trade rose 0.2 per cent in February raising fears the Reserve Bank will be forced to increase interest rates at its next meeting in April.
The increase in retail trade was only a moderate improvement on January's 1.8 per cent rise, but when taken together with near record low unemployment and inflation beyond the RBA's target, it is likely enough for the central bank to consider a further rate hike.
"Spending in food related industries continued to grow steadily in February, with cafes restaurants and takeaway food services up 0.5 per cent, while food retailing rose 0.2 per cent." "There is nothing too surprising in these data about how the anticipated slowdown in consumer spending is unfolding," he said.
Persistent spending on hospitality has been put forward by experts as one reason inflation has remained above expectations, and may cause the RBA to consider a further rate rise in April. Picture: Alexi Rosenfeld/Getty Images
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