Households started putting the brakes on discretionary spending in early May and have been progressively cutting back harder on non-essential items. E&P consumer analyst Phil Kimber says consumer spending more broadly could remain subdued for between 12 to 18 months in Australia.

Increases in cost-of-living pressures, sharp interest rate rises from the Reserve Bank of Australia and big price hikes of at least 25 per cent in electricity and gas charges by most energy retailers from July 1, have accelerated the short-term pullback.