The Australian Bureau of Statistics (ABS) reported that retail sales reached a record high in April. This indicates that Australian households are continuing to spend despite the rising cost of living as the price of fuel and other commodities increases.
Retail sales rose 0.9% in April to a record high of A$33.9 billion ($24.1 billion), and the data helped the Australian dollar rise this morning. The data reflects the continued recovery of the Australian economy and consumer adjustment to rising inflation. It also includes rising interest rates and a slowdown in the housing market.
In addition, the ABS announced that the Australian economy is experiencing widespread inflation. More than one-third of private companies plan to increase prices for goods and services in the next three months.
However, the rise in inflation and commodity prices may prompt the Reserve Bank of Australia (RBA) to accelerate its rate hike after raising rates by 0.25% to 0.35% at its May 3 meeting.
The RBA signaled in the minutes of its May meeting that it would raise interest rates again in the future.