Australian households are spending up a storm despite rising cost of living pressures, with the Bureau of Stats’ latest retail sales figures jumping by 1.3% in July and 16.5% over the year. That was well above forecasts of 0.3%, and it marks the largest hike since March. Aussies collectively spent $34.7 billion dollars at retailers last month, with the biggest gains posted by department stores (3.8%), clothing (3.3%), and cafes/restaurants (1.8%), with household goods (-1.1%) the only category in decline. However, the official figures do not state how much of the increase was due to inflation rather than consumers buying more. Boo… And experts say the Reserve Bank’s board won’t be put off from hiking interest rates when it meets next week. That means we need to get set for another 0.5% rise to 2.35%.