Australia's retail sales edged upwards in May after a flat April, the Australia Bureau of Statistics (ABS) reported on Wednesday.

Retail sales in Australia gained a seasonally adjusted 0.2% in May from April. In April, national retail sales had been unchanged from March, following a 0.2% seasonally adjusted gain in March over February, added the ABS.

On year, retail spending in Australia in May rose 3.3%, according to ABS figures.

The modest rise in May retail spending from April was "driven mainly by a bounce-back in clothing purchases," said an ABS official.

However, retail spending was otherwise restrained in May, "with a drop in food-related spending and flat results across household goods," added the ABS.

In Australia in May, food sales fell 0.4% from April, while spending in cafes, restaurants and takeaway food services was flat, according to the ABS.

The somewhat tepid May retail spending outlays will likely be noted by the Reserve Bank of Australia (RBA).

In May, Australia's inflation rate logged at 2.1% on year, within the RBA's 2% to 3% annual inflation target band reported officials.

The RBA cut its key policy rate to 3.85% from 4.05% at its May meeting, but left the rate unchanged in June, citing moderate economic growth, but relatively tight labor markets.

The central bank's next monetary policy meeting is from July 7 through July 8.