Bargain-hunters are set to take the spotlight following a promising inflation readout.
After Wednesday’s inflation numbers, analysts will turn their attention to retail sales from the Australian Bureau of Statistics on Thursday for a read on consumer behaviour.
November’s retail trade numbers will cover the Black Friday sales, which have been growing in popularity.
An early start to discounting helped fuel a solid 0.6 per cent lift in retail sales in October.
Consumer spending has been trending generally weak, reflecting a barely growing economy and households under pressure from higher mortgage repayments and inflation.
ACTU president Michele O’Neil urged the Reserve Bank to start cutting interest rates in February. (Mick Tsikas/AAP PHOTOS)
The Reserve Bank has been keeping a close eye on consumers as too much spending could complicate the inflation task and keep interest rates higher for longer.
December quarter inflation will be at the heart of the RBA’s keenly anticipated February call but the monthly numbers for November were encouraging.
ANZ economist Catherine Birch said the all-important trimmed mean was tracking below the RBA’s forecasts.
“This raises the probability of a February rate cut, although the resilience in the labour market will be a key consideration,” she wrote in a note.
A cut in February would be welcomed by the prime minister, who has been traversing the nation before a federal election, due in May at the latest.
Anthony Albanese has been out spruiking his government’s efforts to ease cost-of-living pain without fuelling inflation, such as its reworked tax cuts and free TAFE places.
Elsewhere, the Australian Council of Trade Unions has been campaigning hard for interest rate relief.
President Michele O’Neil urged the RBA to start cutting next month.
“A resilient jobs market is no reason to delay as spending on services makes up only a tiny part of discretionary spending and is not fuelling inflation,” she said.
“There’s no more time to wait, workers and their families need interest rates need to fall from February.”