Has Oasis, AC/DC, Ashes frenzy crushed Aussies’ rate cut dreams?
Entertainment-mad Australians have risked triggering interest rate rises after a spending spree on AC/DC, Oasis and cricket defied cost-of-living pressures.
Australian homeowners could be on a highway to rate hell next year as cashed-up consumers continue on a spending spree, fuelled by November’s big ticket concerts and sports events.
Figures released Thursday show Australians poured money into entertainment in November, with household spending rising 0.5 per cent for the month and 5.5 per cent over the year.
Recreational spending was the standout increase with a 1.6 per cent jump, the strongest lift across all categories.
November was a month packed with big events - AC/DC stormed stages around the country while Oasis drew massive crowds for their reunion tour and Metallica added to the frenzy.
The Ashes kicked off in Perth, shoppers went wild in Black Friday sales and cinemas were full thanks to the opening of Wicked: For Good.
It was one of the biggest line-ups of sport and music Australia has seen in years.
The surge in spending will put further pressure on RBA Governor Michele Bullock as the consumer numbers indicate inflation will stay high over coming months.
Earlier this week, the governor flagged the RBA board will be watching inflation closely as the bank grapples with the question of increasing interest rates as pressures grow across the economy.
CBA Head of Australian Economics Belinda Allen said the strong spending identified in the CommBank Household Spending Insights (HSI) November report was part of a change in consumer behaviour.
“What we’ve seen particularly post the pandemic is consumers have really wanted to spend on experiences and live events, focusing on categories like sporting matches, concert series, online gaming, and online streaming,” she said.
“Households prioritised experiences in November and the busy calendar of sport and entertainment provided a strong boost to spending.”
The shift has been building throughout 2025. But this is the clearest sign yet that Australians are still willing to spend on fun, even as the cost of living bites and the RBA signals it is getting nervous about stubborn inflation.
Earlier this week, the RBA governor dismissed the inflationary effects of November’s big events.
“People who are going to these big events are often sacrificing other things to go to these big events. So if they’re going to spend that much money on an Oasis concert and accommodation and that sort of thing they might be foregoing some coffees or a breakfast out or they’ll be doing different things.”
“So I think you can’t think about them in isolation and just say all these big events add to inflation. I don’t think it necessarily works that way.”
Black Friday also helped push up spending, and electronics, clothing and furniture stores recorded solid gains. But for the first time in years, the major sales event did not dominate November.
Ms Allen said earlier and longer Black Friday sales were changing how people shop.
“Patterns of consumer spending have evolved as sales events have shifted to as early as October. We are seeing less lumpiness in spending as a result,” she said.
The RBA has been looking for signs that household spending is slowing. Instead it is seeing the opposite. Households have been spending solidly all year and November continued the trend.
Businesses are also taking the opportunity to pass on costs, Ms Allen said.
“Our general view has been the demand environment is now strong enough that businesses can pass on higher costs, and consumers, because they’ve been willing to spend, have accepted those higher costs.”
Rising incomes, high employment and improved household wealth have all supported consumer confidence. But this consistency could now become a concern.
The RBA ended 2025 with a hawkish tone and made clear it needs convincing evidence that inflation pressures are easing.
A nation buying concert tickets, cricket passes, cinema outings and sale bargains is not that evidence.
“The risk of potential rate hikes in 2026 gained traction over the past month and is now elevated post the December RBA meeting. Robust spending will be part of that conversation,” Ms Allen said.
“The solid improvements in spending... is just representative of a better growth environment in the Australian economy. Not only from the consumer, but businesses are investing.
“The public sector is still spending when we’re at the capacity limits and when you’re at the capacity limits, you do generally see inflation bubble along.
Ms Allen said the RBA is unlikely to raise rates in the new year, but there are increased risks it may do so.
“We’re certainly flagging the risk of higher interest rates next year. It’s not our base forecast, but that’s where the risks are tilted at the moment, just given what we’re seeing on the activity side and the prices side of the Australian economy,” she said.
Other economists warn rate hikes may come earlier, EY Chief Economist Cherelle Murphy said‘We expect Australians to spend around $2.8 billion per day across November and December, a 4% increase on the same period last year.
“Although not problematic in itself, in a capacity constrained economy, this increase in festive spending may push the economy towards its capacity. If that then keeps inflation elevated, higher interest rates are likely in the first half of 2026.”
Betashares’ David Bassanese added “If the December quarter CPI in late January shows persistent underlying inflation pressure, the RBA has warned it may raise interest rates as early as February.”
A few weeks of Oasis nostalgia and AC/DC rock anthems might cost households more than they bargained for. Australian households could be looking back in anger in 2026.
More Coverage
Originally published as Has Oasis, AC/DC, Ashes frenzy crushed Aussies’ rate cut dreams?
Why Daikin’s new $28m Sydney factory is a game changer
