By Poppy Johnston in Canberra

Australian retail sales were broadly flat last month, following a boost in August fuelled by unseasonably warm weather.

The minor 0.1 per cent gain in September followed a 0.7 per cent lift in August.

In July, the Australian Bureau of Statistics recorded another steady result for sales across retailers.

“After a boost last month from warmer-than-usual weather, retail spending held firm in September,” ABS head of business statistics Robert Ewing said.

The monthly retail trade result provides a steer on consumer spending in the wake of income tax cuts and other cost-of-living relief.

Extra funds have been landing in bank accounts since July 1 when tax cuts began, bringing with it concerns that bolstered incomes would add to inflationary pressures and keep interest rates higher for longer.

The 0.5 per cent lift in household goods retailing was the strongest lift over the month, the ABS said, more than unwinding the 0.4 per cent fall in August.

“The rise in household goods was led by WA spending on hardware and gardening items after unseasonal rainfall last month reduced sales,” Mr Ewing said.

Cafes, restaurants and takeaway food services rose 0.4 per cent, while all other categories were slightly down.

Department store sales fell 0.5 per cent, with minor declines in clothing, footwear and personal accessories, and food retailing.

“The August boost in spending on alcohol was temporary, with a sharp reversal in liquor retailing this month driving the fall in food spending,” Mr Ewing said.

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