Australian household spending in February was lower than expected

Data from the Australian Bureau of Statistics showed that the country's household spending in February was slightly lower than expected, despite the Reserve Bank (RBA) cutting interest rates for the first time in four years.

Australian household spending rose by 0.2% in February, up from January's 0.5%. Meanwhile, economists had forecast an increase of 0.3%. Compared to the same period a year earlier, the value climbed 3.3%.

According to the statistics bureau, Australian households reduced spending on health care, particularly on visits to doctors and hospitals, while increasing food expenses.

As Bloomberg writes, such data were collected after the government cut taxes and the RBA cut its rate by a quarter of a percentage point to 4.1% on February 18.

Australian household debt is among the highest in the world. The population is facing high borrowing costs and rising inflation, especially in housing prices, the news agency emphasizes.