Australia in ‘retail recession’ as inflation and rate hikes hit spending, says report

With spending expected to dip again in the June quarter, Deloitte forecasts a broader ‘consumer recesssion’ later this year

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Australia is the midst of a “retail recession” as inflation and higher interest rates erode the buying power of consumers, according to a report by Deloitte Access Economics.

Retail turnover once inflation is stripped out sank 0.6% in the March quarter, or twice the pace of the retreat in the final three months of 2022. The June quarter is also likely to post a drop in retail sales, making it three consecutive quarters of decline.