Inflation Up As Retailers Report Soft Sales Growth Ahead Of Election

Inflation is climbing which is not good news for the Labor who was punting on a fall ahead of the Election, the news comes as retailers report a significant slump in audio appliance and CE sales. The Australian Bureau of Statistics reported that Australia’s March quarter CPI inflation data has exceeded estimates with questions now being raised about a potential rate cut. The CPI indicator for March rose 2.

4% versus 2.2% that was expected. CPI rose 0.



7 per cent on-quarter and 2.9% year on year versus market expectations of 0.6% and 2.

8%, respectively. It’s the first time since the December quarter of 2021 that the annual outcome was within the 2-3 per cent target band. Core inflation is the Reserve Bank’s preferred measure and that is up.

The most significant price rises this quarter were Housing (+1.7%), Education (+5.2%) and Food and non-alcoholic beverages (+1.

2%). Partially offsetting the rise were Recreation and culture (-1.6%) and Furnishings, household equipment and services (-0.

9%). Annual Services inflation eased to 3.7 per cent in the March quarter, down from 4.

3 per cent in the December quarter driven by lower price increases for Rents and Insurance. Annual Goods inflation increased to 1.3 per cent in the March quarter, up from 0.

8 per cent in the December quarter largely due to Electricity prices increasing in the March quarter. Currently retailers are reporting a “significant fall in sales” ahead of the election and following the introduction of Trump Tariffs. One of the big issues impacting markets is potential prices rises after US president Donald Trump has accelerated a global trade war raising concerns that his policies could cause a recession but also a pickup in inflation.

Australian retail sales are due on Friday which will provide insights as to how the consumer is holding up in the face of market turbulence. Australians also head to the polls for the federal election on the weekend..