Christmas food splurge drives surprise rise in spending

Commonwealth Bank data shows Australian households increased spending in December as food, drink and eating out rose in the lead-up to Christmas.

The latest CommBank Household Spending Insights showed the overall Household Spending Insights Index rose 0.7 per cent in December. The result extended a run of monthly gains to 15 months.

Commonwealth Bank said annual growth in the index stood at 6.3 per cent. The bank said the reading suggested real household consumption tracked slightly above expectations.

Food and drink

Food and beverage spending rose 1 per cent in December. Commonwealth Bank said it was the strongest monthly lift since April.

Commonwealth Bank linked the rise to seasonal spending patterns ahead of Christmas. The bank cited higher spending at butchers and liquor stores.

Hospitality spending also rose in December. Commonwealth Bank reported a 0.7 per cent lift for the second consecutive month.

The bank said entertaining and eating out made a "Christmas comeback" late in the year. It said households spent more on dining out during the month.

Utilities pressure

Commonwealth Bank also pointed out higher utilities spending at the end of 2025. The bank linked the rise to the end of energy rebates.

The update adds to a stream of indicators that businesses watch closely through the holiday period, when discretionary outlays often shift sharply between retail categories and services. Banks and retailers also monitor these patterns for signals on household budgets as price pressures and cost-of-living measures change.

Belinda Allen, Head of Australian Economics at Commonwealth Bank, said the lift in spending ran ahead of the bank's earlier expectations.

"The strength in household spending late in the year was more robust than anticipated and points to a willingness to spend that exceeds our earlier forecasts," said Belinda Allen, Head of Australian Economics, Commonwealth Bank.

Commonwealth Bank publishes the Household Spending Insights as a monthly view of household outlays. The index summarises spending movements and tracks changes over time.

The December update suggests the strongest gains came from categories associated with social occasions and holiday gatherings. Food and beverage spending rose faster than in recent months, while hospitality sustained its recent lift.

Commonwealth Bank's comments on utilities also point to renewed pressure on essential household bills as government rebates roll off. The bank did not provide a specific percentage change for utilities in the update.

The bank's reading of annual growth at 6.3 per cent suggests spending continued to expand year on year. The monthly gain of 0.7 per cent indicates momentum carried into the final month of the year.

Commonwealth Bank said the late-year result exceeded its earlier forecasts. The next Household Spending Insights update will provide a further read on whether post-holiday spending eases in early 2026.