Sydney, Jan 12, 2026, 17:42 AEDT — Market closed.
- Wesfarmers shares ended the day 1.44% higher at A$82.23, having reached a peak of A$82.40 during trading.
- In November, Australian household spending climbed once more, maintaining the spotlight on demand and its implications for interest rates.
- Coming up: Australia’s CPI release on Jan 28, followed by Wesfarmers’ half-year results on Feb 19.
Wesfarmers Limited shares climbed 1.44%, closing Monday at A$82.23. The stock fluctuated between A$81.23 and A$82.40 during the session, after kicking off at A$81.24. Roughly 1.08 million shares traded hands. (Investing)
This shift is significant since the next phase for major retailers hinges more on data from Canberra than on store updates. A recent boost in household spending fuels the “soft landing” narrative, despite persistent inflation pressures.
For Wesfarmers, increased consumer spending signals a boost for sales across its retail-focused portfolio. Yet, the same figures also bolster arguments for raising interest rates, a move that typically weighs on investors’ appetite for discretionary stocks.
Australian household spending climbed 1.0% in November, reaching A$79.4 billion, following a revised 1.4% rise in October, official figures showed. “The undeniable strength in household consumption will likely set the alarm bells off for the RBA,” said Abhijit Surya, senior APAC economist at Capital Economics, highlighting services as a key driver of momentum. Interest-rate swaps, which reflect market expectations, price in a 25% chance of a rate hike in February and roughly 76% odds by May, after the Reserve Bank of Australia cut rates three times last year to 3.6%, Reuters reported. (Reuters)
That’s the tug-of-war for the coming week. Stronger demand boosts retailers, but a quicker move toward tightening might undercut the very spending that recently lifted confidence.
The downside is clear: if rate expectations climb once more, mortgage-heavy households might tighten their belts, forcing retailers to slash prices just to move product. A lull following Black Friday-style deals would also fuel doubts about whether the spending surge was just timing, not a lasting trend.
Macro watchers are focused on one key date: Australia’s December CPI, set for release on Jan 28. A hotter-than-expected figure could push rate expectations higher and weigh on consumer stocks. (Australian Bureau of Statistics)
Attention shifts back to individual companies on Feb 19, as Wesfarmers prepares to report its 2026 half-year results and hold a briefing. Investors will look for updates on trading, costs, and margins in its main operations. (Wesfarmers)
