Rate cut dreams shattered as Black Friday’s biggest spenders revealed

Australians spent big over the Black Friday and Cyber Monday sales, putting significant pressure on inflation with the hope of a rate cut getting further away.

Australians’ shopping habits are directly impacting their ability to pay off their mortgage and even preventing those hoping to get their foot into the property market.

With the cash rate still sitting high at 3.6 per cent, the RBA is looking closely at the inflation figure to make a decision on whether they will cut interest rates in their upcoming meetings.

Inflation came in at 3.8 per cent in November, well above the target range of 2-3 per cent, which experts say has ruled out the chance of a rate cut.

Lower interest rates are in jeopardy after the Black Friday sales. Picture: Jeremy Piper

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Now with the addition of huge spending across the cyber sale weekend, Australia’s shopping habits are likely to push this figure up even further, making the dream of lower interest rates become closer to fantasy.

Afterpay and Square’s Black Friday and Cyber Monday data tracked some of the biggest spending regions across Australia – showing who is directly affecting Australia’s inflation rates.

Many suburbs and cities had a huge increase from previous years as well – a worrying statistic for inflation.

Australians made more than 14 million transactions from Black Friday to Cyber Monday, up 13 per cent year on year, according to Afterpay and Square.

Are Queenslanders to blame for inflation?

Brisbanites were the biggest spenders over the period, outpacing Sydney and Melbourne, according to Afterpay and Square data, spending a massive $45 million.

This was a 29.9 per cent increase in in-store sales, and a 21 per cent growth in online sales compared to the year before.

Brisbane’s trendy riverside suburb New Farm, known for its boutique shopping and weekend markets, amassed almost $4m in sales.

The Gold Coast locals spent $27.5m and had the biggest spend per transaction of $61.

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Black Friday drew in more online and in-store shoppers this year. Picture: Richard Walker

Victorians and South Australians close behind

Melbourne’s CBD emerged as the primary shopping hotspot.

On a suburb level, Melbourne’s CBD shoppers were putting huge pressure on inflation by spending a total weekend volume of $9m over the cyber sales weekend – the largest spend for one shopping hub.

Locals in the CBD, Parkville, East Melbourne, Carlton, St Kilda Rd and South Yarra were among the biggest spend suburbs in Melbourne.

In South Australia, Inner City Adelaide residents were the biggest spenders per transaction, spending $88.5 on average per transaction.

Crowds flocked to retail stores during the Black Friday sales. Picture: NewsWire/Andrew Henshaw

How does Australia’s biggest city stack up?

Sydney, where property prices are the highest across the country, also contributed greatly to the spend, with a huge $40m in total weekend volume.

The CBD was a particularly popular spot for shopping, with inner west suburbs among the biggest culprits including Tempe, Erskineville, Broadway, Annandale, Chippendale, Newtown and Enmore ranked as the top spending suburbs.

Sydney shoppers spent a total of $40m across Afterpay and Square transactions. Picture: Gaye Gerard

The ones keeping it at bay

Perth’s spend totalled $2.6m, while about $1.8m of that was in the trendy entertainment suburb of Northbridge.

Colin Birney, head of business development at Square in Australia, said the cyber weekend was “expanding beyond retail and becoming a broader economic driver”.

“Hospo in particular is feeling the benefits, with cafes, restaurants and bars seeing strong trade as shoppers make a day of it,” Mr Birney said.

“It’s turning into a weekend that supports the whole local economy, not just retail.”

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