Australian retail sales increased 1.7 per cent in December compared to 2021, but the Retail Association are quick to flag that inflation has played a factor in the increased numbers.

These figures are according to Mastercard’s Spending Pulse, which found that Apparel (up 6.7 per cent) and Groceries (6.6 per cent) were the categories with the biggest jump; given that food inflation has outstripped all other forms, this isn’t too surprising.

Electronics were up 3.5 per cent in December, while Home Furnishings came down 2.4 per cent after achieving record growth in 2021.

“Achieving spending growth in December, during the peak of Australia’s shopping activity, is encouraging for retailers – especially in a period of economic uncertainty,” said Paul Zahra, CEO of Australian Retailers Association.

“These December results are a testament to the resilience of the retail industry and set a good foundation as we anticipate a period of uncertainty in 2023, with inflationary pressures and the rising cost-of-living.

“We’re aware that it will be a challenging environment for businesses, particularly small businesses on tighter margins, as they continue to battle rising operating costs associated with fuel, energy, labour, supply chains and rent.”