Weekly Updates

In Australia, the monthly CPI indicator suggested that both headline and trimmed mean inflation remained in the RBA target range in April. Abroad, some of US tariffs were blocked by a US trade court, before being temporarily reinstated by an appeals court.

In Australia, the RBA cut the cash rate by 25bps to 3.85% as expected, and turned more dovish. The S&P Global PMIs suggested a slower pace of expansion in the private sector in May.

In Australia, the wage price index rose more than expected in Q1, driven by administrative wage decisions and public sector enterprise agreements. Employment growth was strong, and unemployment remained low in April.

In Australia, dwelling approvals saw an unexpectedly strong fall in March, while the household spending indicator saw a surprising decline. The Melbourne Institute inflation gauge pointed to a rise in the annual rates of consumer price inflation. 

In Australia, Q1 CPI figures surprised slightly to the upside, but a decline in trimmed mean inflation to the target band should convince the RBA to cut the cash rate by 25bps later this month. Retail sales volumes were flat in Q1, while nominal retail trade growth in March turned out slightly slower than expected.

The S&P Global Australian flash PMI for April indicated that business activity remained in expansion and input cost and selling price inflation accelerated a little. Consumer confidence picked up a little last week.