Falling spending on alcohol, tobacco and recreation has slowed Australia's consumer recovery as the Reserve Bank mulls whether to cut interest rates again.

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Household spending grew 0.1 per cent in August, the Australian Bureau of Statistics revealed on Thursday, below consensus estimates of a 0.3 per cent rise.

While consumer spending was still trend up - lifting five per cent in the past year - momentum had slowed after a very strong result in the June quarter, CommSec chief economist Ryan Felsman said.

"Higher inflation in the third quarter and households likely keeping their powder dry for Black Friday sales events in the fourth quarter s

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