Lower petrol price helps lift retail sales

Consumers have a few extra dollars in their pocket.

A shopper is seen carrying a David Jones store bag

Lower petrol prices may add some cheer to retailers' Christmas sales (AAP)

Lower petrol prices have added some cheer to retailers' Christmas sales.

The latest BDO Australian Retail Index shows that sales revenue for the period from December 1 to December 21 was 16 per cent higher than last year.

"It's been a very solid three weeks. Tills are ringing," BDO national retail lead partner Simon Scalzo said.

He said falling petrol prices, low interest rates and talk of a rate cut may be benefiting retailers.

"A fall in petrol prices is like a weekly tax cut," Mr Scalzo said.

"

"This tends to increase their confidence and gives them a bit of extra purchasing power," he said.

The BDO Australian retail Index draws information from thousands of retail stores across the country.

The lift in December sales contrasts with sluggish online retail sales in November.

The National Australia Bank online retail sales index released on Monday showed that sales in November were just 3.9 per cent higher than a year ago.


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