Australians spent an “unprecedented” $74.5 billion this holiday season, but economists are questioning whether this was a sign of Aussies splurging in the face of financial uncertainty, or merely the result of inflationary-driven price hikes.

According to data from Westpac, retail sales between November 1 and December 24 were up 8.6 per cent of 2021 – which also saw a record spend, of $64 billion.

Post-Christmas spend, including the Boxing Day sales are expected to be $23.5 billion, up 7.9 per cent from 2021.

Australian Retailers Association’s CEO Paul Zahra says talk of a “record spend” hides the actual reasons.

“Some analysts have said, and I broadly agree, that up to two-thirds of increase in Christmas retail spending was due to increase in prices and a third was the increase in volume.

“The sales increase may not be what RBA would like to see, but people have continued to spend and celebrate December as a season of indulgence.”

NAB’s chief economist Alan Oster tells the AFR he is “highly sceptical of claims about a bumper Christmas season for retail” given that early December showed weaker spending.

“My suspicions are that it’s not great – not because they haven’t spent a lot of money, they have, but whether it’s more than they would normally spend,” Oster said.

“There have been big increases in prices, so in real terms I think consumer spending has almost certainly going backwards.

“What we know is a lot of the money that probably got spent for Christmas was spent in Black Friday.”