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Rising food prices bringing retail sales down

Latest figures show retail sales grew by just 0.2 per cent despite analysts predicting a 0.5 per cent increase.

Economists say the chances of the Reserve Bank cutting interest rates remain low.

ANZ Head of Australian Economics David Plank tells Ross Greenwood higher food prices have been a contributor to the poor results.

“The jump in food prices, reflecting both the drought and swine flu… that seems to be dampening spending elsewhere.

“Consumers are having to put more into food which has taken away their ability to spend on other things.”

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Image: Getty/Hero Images

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