February 06, 2023 05:38 GMT
MNI BRIEF: Aussie Q4 Retail Volumes Fall On Rates Squeeze
A 0.2% q/q decline in Q4 retail sales volumes underscored the impact of higher interest rates and inflation, but evidence of more wary consumers is not expected to stop the Reserve Bank of Australia from tightening policy again on Tuesday.
The 0.2% q/q decline was the first drop since Q3 2021 and followed a 0.3% q/q increase in Q3 last year. Retail price inflation slowed to 1.1% from 2.1% in Q3 due to flat food retailing prices and additional discounting during Black Friday sales. It was the smallest rise in retail prices for 2022.
The RBA is expected to hike rates by 25bp to 3.35% when it holds its first meeting of the year on Tuesday. (See MNI RBA WATCH: 25bp Hike Expected; Eyes On Revised Forecasts)
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