We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
Inflation Outlook Brightens as Australia Braces for Key CPI Update
Inflation Outlook Brightens as Australia Braces for Key CPI Update
Following a decrease in annual inflation to 4.1% from a previous rate of 5.4%, optimism is in the air about reinforcing the disinflation trend witnessed in the latter half of the prior year. The drop to a 0.6% quarterly increase has been heralded as the smallest rise since early 2021, igniting hopes for continuous improvement.
While the RBA has not tweaked rates since their last adjustment in November, market participants are speculating that the upcoming steps will involve easing. However, projections for these reductions remain hazy and are presumed to be on the RBA's agenda later rather than sooner.
On the horizon is the upcoming CPI update on Wednesday, critical for the RBA's assessment of achieving their inflation goal of two to three percent. Both the RBA and banking economists envisage that this endeavor to rein in inflation might require continued slow and steady effort. Despite the arduous journey ahead, the projection sees mid-year inflation slowing to 3.3%, aiming to realign with the target at 2.8% by the close of 2025.
Economists from top Australian banking institutions predict a modest rise in March's CPI. Predictions range from 0.7% from National Australia Bank and Commonwealth Bank to a slightly higher 0.8% foreseen by ANZ and Westpac. This uptick is juxtaposed against an abnormally high 1.4% increase recorded in the previous March, leading to a potential dim in annual inflation rates.
Analysts from the Commonwealth Bank of Australia (CBA) have presented a reserved chalk-up for the headline CPI at 3.4%, slightly beneath current RBA projections. CBA's assessment is backed by signs of tempering price pressures apparent in recent business and industry surveys. Nevertheless, items like rents and education could witness substantial inflation, with healthcare poised as a potential wildcard for price acceleration.
Stepping back a few days from those paramount releases, the economic agenda includes the presentation of "flash" purchasing managers' surveys in April. Following the Anzac Day holiday, the ABS will also disseminate producer price and export-import indexes which will send corresponding ripples across the markets.
Market winds are also responding to the longest continuous decline experienced by American indices since fall of 2022. With this backdrop of six consecutive skids for the S&P 500 and Nasdaq, investors wrestle with an ambivalent earnings landscape and burgeoning international tensions. Thus, while the larger S&P 500 and Nasdaq experienced declines, Australian share futures saw a slight uplift, paired with mixed performances within local benchmarks.
Published:Monday, 22nd Apr 2024
Source: Paige Estritori
Share this news item:
| Australia's New Pathway to Boost Economic Growth 16 May 2024: Paige Estritori Australian financial sector leaders have expressed strong support following the latest announcement of key budgetary adjustments aimed at streamlining investment processes and deepening engagement within the nation's financial landscape. The Federal Budget has placed a spotlight on the financial service sector's significant position as a promoter of Australia's sustainable economic prosperity. - read more |
| Financial Pressures Reshape Australian Job Market Landscape 09 May 2024: Paige Estritori Economic uncertainties and the escalating cost-of-living are prompting a considerable transformation within the Australian labor market, with anxiety over job security influencing employee behavior significantly. This departure from recent trends sees a strategic shift, which could alter the dynamism between staff members and their employers. - read more |
| ATO Targets Home Office Claims & Real Estate Deductions 06 May 2024: Paige Estritori Australian residents are being alerted to tighten up their tax return filing, particularly with the deductions claimed for home offices and rental property expenses, as the Australian Tax Office (ATO) sharpens its scrutiny on such declarations. - read more |
| Australian Students to Receive $3B Reduction in Loan Burdens 06 May 2024: Paige Estritori In an epoch-making decision, the current Australian government has pledged to substantially alleviate the student loan burden, offering respite to more than three million degree holders. They will collectively witness a remarkable deduction of $3 billion from their outstanding HELP (Higher Education Loan Program) liabilities. - read more |
| Market Resilience Amid Strong Quarterly Inflation Data 30 Apr 2024: Paige Estritori Following an initial surge, the Australian equities wavered into a close call as the market absorbed the recent inflation trends. Trading remained virtually unchanged with the S&P index dropping a nominal 0.5 points to settle at 7683, and the All Ordinaries dipping gently by 0.4 points, ending the day at 7937.5. - read more |
| Rates on the Rise: Market Jitters Lead to ASX Plunge 29 Apr 2024: Paige Estritori Significant market movements underscore the growing concerns over a possible interest rate hike by the Reserve Bank of Australia, resulting in a marked drop in the nation’s share market. The S&P/ASX200 index faced a jarring fall, dropping 1.4 per cent which translates into a 107.1 point retreat, ending the session at 7575.9—a notable slump affecting a broad range of sectors. - read more |
| Tax Tension: Australians Grapple with Surging Income Levies as Inflation Undermines Earnings 26 Apr 2024: Paige Estritori Amidst soaring living expenses and aggressive interest rate increases to quell inflation, Australians face an additional financial burden as income tax impositions outpace those in other affluent nations. This echelon of fiscal pressure is compounded by the unfortunate fact that their earnings are making a retreat in real value terms. - read more |
| Loans for Cars: Getting an Even Better Deal If you're in the market for a new car, you're probably wondering what you need to do to get the best car loan. It's no secret that the car dealership will try to sell you a loan, but you don't have to take their offer! In fact, you can get a much better loan if you know what you're doing. - read more
|
| Insurance Renewal Approaching? Tips to Ensure You're Still Getting the Best Rate! Is it that time of the year again when your car insurance is up for renewal? Often, it comes as a reminder in the mail or a notification from your insurer. But instead of instinctively renewing your existing policy, let's pause and explore the underrated benefits of a periodic insurance review. Taking the time to scrutinize your policy could unveil potential savings and align coverage with your current needs. - read more
|
| Loans for Cars: Understanding the Impact of Your Credit History If you're in the market for a new car, you may be wondering if you can get a loan with poor credit. The answer is yes, but it's important to understand the impact that your credit history can have on the loan process. - read more
|
| Your Ultimate Guide to Car Finance in Australia: Top Tips for Finding the Best Deals Car finance in Australia presents a myriad of options for those looking to purchase a vehicle through a payment plan. Understanding how car finance works is crucial to navigating this complex landscape and finding a deal that aligns with your financial goals. From loans offered by banks and credit unions to dealer financing and specialised car finance companies, the choices are extensive. - read more
|
| Things You Wish You Knew Before Buying a Car Welcome to Things You Wish You Knew Before Buying a Car – the ultimate guide to understanding car financing.For a limited time, you can download a free copy of this valuable resource. Our retail price for the eBook is AUD $19.95, but we're offering it to you for free – no strings attached! Click to Download Free - read more
|
| Leveraging Trade-In Values and Loans for an Australian Car Upgrade For many Australians, a car is more than just a means of transportation; it's a symbol of freedom, a tool for exploration, and often, a reflection of personal style. With the auto market continually evolving, staying abreast of current trends is key for car buyers looking to upgrade. New models with advanced technology, improved fuel efficiency, and enhanced safety features enter the market each year, making the prospect of upgrading increasingly appealing. - read more
|
| Loans for Cars: Establishing How Much You Can Afford to Borrow When it comes to car loans, one of the first things you need to determine is your budget – how much can you afford to borrow and still comfortably make your monthly car loan repayments? - read more
|
|
|
Your Ultimate Guide to Car Finance in Australia: Top Tips for Finding the Best Deals Car finance in Australia presents a myriad of options for those looking to purchase a vehicle through a payment plan. Understanding how car finance works is crucial to navigating this complex landscape and finding a deal that aligns with your financial goals. From loans offered by banks and credit unions to dealer financing and specialised car finance companies, the choices are extensive. - read more
|
|
|
Leveraging Trade-In Values and Loans for an Australian Car Upgrade For many Australians, a car is more than just a means of transportation; it's a symbol of freedom, a tool for exploration, and often, a reflection of personal style. With the auto market continually evolving, staying abreast of current trends is key for car buyers looking to upgrade. New models with advanced technology, improved fuel efficiency, and enhanced safety features enter the market each year, making the prospect of upgrading increasingly appealing. - read more
|
We respect your privacy.
A party who agrees to be responsible for the payment of another party's debts should the original party fail to pay or perform according to a contract.