All eyes on retail sales as rates pressure builds

The latest retail sales data will be watched keenly following a hot inflation print that darkened hopes of a near-term rate cut. / (min cost $ 0 ) or signup to continue reading Fresh retail sales data from the Australian Bureau of Statistics for the month of May is scheduled for release on Wednesday. In April, the statistics bureau recorded lacklustre 0.

1 per cent lift in retail sales, which was a little below expectations and not nearly enough to unwind a 0.4 per cent fall in March. CommSec senior economist Ryan Felsman said higher interest rates and ongoing price pressures have been weighing on household budgets.



"Cautious consumers have reduced their discretionary spending so far in 2024 and this trend is expected to continue in May," he said. The consumer sector remains a source of uncertainty for the Reserve Bank of Australia as it grapples with the challenging final stretch to return inflation to target. It left interest rates on hold at 4.

35 per cent at the last meeting, where the cash rate had been since November. On Tuesday, the minutes from the June interest rate meeting will be released and is expected to show a discussion of either a hike or a hold, as Governor Michele Bullock has already revealed. Yet since that meeting, monthly inflation data came in stronger-than-expected, sparking speculation interest rates may need to go higher or stay where they are for longer.

Home price numbers for June are also set to be released by real estate data firm CoreLogic on Mond.