Graph 2  Household Consumption December 2019 = 100 index  Discretionary goods  index  (20%)  100  100 Essential services  Essential goods  (44%)  (16%)  80  80  60  60 Discretionary services (20%)  40  M  J S 2018  D  M  J S 2019  D  M  J S 2020  D  M 2021  40  Sources: ABS; RBA  As this switch in spending was a global phenomenon, it supported a swift recovery in global trade; goods trade is now above pre-pandemic levels.
This feature has significant impact on inflation rate particularly on foodstuff category which tends to be volatile and uneasy to subdued. The fragile microstructure of staple food markets has significant bearing on two fronts, namely production and distribution process.