According to the latest data released, the total retail sales in Australia has risen at a lower than expected rate of 0.2 percent to A$ 21.5 billion or $22 billion during the month of August compared to a year earlier.

The retail sales in the country had fallen by 0.8 percent during the previous month, according to the data released by the Bureau of Statistics today. The rise of 0.2 per cent in the month is lower than 0.4 percent predicted by a poll of 22 economists by Bloomberg News.

The consumer spending increased 6.9 percent in department stores, which become the largest contributor to the rise during the month and it rose by 0.4 percent food shops. The spending on household goods fell by 1.5 percent and that in cafes and restaurants fell by 0.9 percent, according to the data released.

The spending in the retail sector was boosted due to a series of interest rate cuts by the Reserve Bank of Australia, which is looking to revive the economic growth. RBA Governor Glenn Stevens has reduced the benchmark borrowing cost by a quarter to boost consumer demand in the country.