Fashion pulse: Australia - August 2026

Consumer prices (August)

Australian consumer price inflation rose to 4.0 percent year-on-year in August 2026 from 3.5 percent in July, according to the Australian Bureau of Statistics (ABS). Clothing and footwear prices rose 2.6 percent YoY, down from 4.9 percent in July, and moved below headline inflation. On the month, clothing and footwear prices fell 0.9 percent.

Within the basket, garment prices fell 2.2 percent YoY, according to the ABS. Prices of menswear fell 3.0 percent, womenswear 1.3 percent and infants' and children's clothing 3.6 percent. Footwear prices rose 6.5 percent and accessories 12.7 percent.

Household spending (August, preliminary)

Household spending on clothing and footwear fell 1.0 percent month-on-month in August, seasonally adjusted, after a 1.5 percent rise in July, according to the ABS Monthly Household Spending Indicator. Compared with August 2025, clothing and footwear spending was 4.8 percent higher in current prices, or roughly 2 percent higher after allowing for clothing and footwear price inflation. Total household spending was unchanged on the month and 6.8 percent higher YoY.

By state, clothing and footwear spending rose 0.7 percent month-on-month in Western Australia but fell in every other state and territory, with the steepest decline, 2.1 percent, in Tasmania, according to the ABS.

Macro context (August)

The ANZ-Roy Morgan Consumer Confidence rating was 74.4 in August, down from 75.4 in July and well below 89.0 in August 2025, according to Roy Morgan. Australia's seasonally adjusted unemployment rate rose to 4.6 percent in August from 4.5 percent in July, according to the ABS.

Monetary policy and currency (August)

The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.35 percent in August. The Australian dollar averaged 71.01 US cents in August, up from 69.64 US cents in July, a 2.0 percent rise, according to RBA data compiled by the Bank for International Settlements (BIS). Compared with August 2025, when it averaged 64.91 US cents, the Australian dollar was 9.4 percent stronger, lowering the local cost of dollar-invoiced imports.

The bottom line

Australian clothing and footwear prices rose 2.6 percent YoY in August, below headline inflation of 4.0 percent, as garment prices fell 2.2 percent while footwear and accessories rose. Household spending on clothing and footwear fell 1.0 percent on the month but was 4.8 percent higher than a year earlier. Consumer confidence stood at 74.4.