Debit card customers to pay more for discretionary items
The latest Consumer Price Index from Westpac revealed that in the first six months of the year there was a 1.4 per cent growth in the cost of discretionary items, which may mean debit card customers will have spent more on these products than in the past.
According to the report, this represents the highest six-month pace of price growth seen since December 2009.
The cost of clothing and footwear shot up by 2.5 per cent in the second quarter of 2011, despite forecasts that there would be a 0.5 per cent decline.
Debit card customers also faced higher prices for household contents and services, with these rising 1.5 per cent in price.
However, Westpac stated: "Our view is that this rise is unlikely to be indicative of strong demand but rather is likely being driven by retailers' pricing policies that do not look to be sustainable."
Earlier this week, figures from the Commonwealth Bank of Australia revealed that Aussies using debit and credit cards spent $9.5 billion online during 2010.
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