Australia’s economy is once again struggling given the virus surge. As consumers and employees are reluctant to venture out, a ‘shadow lockdown’ has occurred across the eastern states. There have been large falls in consumer confidence and mobility in January which is likely to negatively impact spending. Also, Australia’s annual inflation has accelerated to 3.5% in the December quarter 2021 as rising commodity prices and housing costs dent consumer’ purchasing power. There is considerable pressure on the Reserve Bank to reconsider their “patient” stance on raising interest rates post this inflation surge.
Article written 3 February 2022.
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