ECONOMY

RBA's latest decision to keep interest rates at a 12-year high of 4.35% was met with a silent market reaction, as seen by the Australian dollar's steadying around $0.6595.

While households increased their spending on groceries and healthcare, there was a 1.8% decrease in spending on new clothes and shoes, reversing the 0.2% growth reported in August.

The inquiry found that the average price of nine essential items, including penne pasta, beef mince, teabags, carrots, and Weet-Bix, at Woolworths, Coles, Aldi, and IGA across all Australian capital cities was AU$44.70. In comparison, the same items cost AU$99.38 in the four remote communities.

A handful of industry funds accounted for most of the spending, with AustralianSuper being the largest marketing spender in the 2022-23 financial year, spending a total of AU$60.2 million. Queensland-based Australian Retirement Trust ranked as the second largest spender on marketing, investing AU$41.8 million.

The company predicted that its earnings from its Australian food division, before interest and tax, to be between AU$1.48 billion and AU$1.53 billion in the December half.

Compared to Q2, Australia's inflation rate declined one percentage point in the September quarter and broadly aligned with expectations of being between 2-3%. The drop in the inflation rate is being attributed to lower fuel prices and energy bill discounts.

Global commodity prices should fall to a five-year low next year thanks to a huge oil glut, the World Bank said Tuesday, pointing to oversupply and to flat demand from China.

RBA governor Michele Bullock announced the central bank incurred a loss of AU$4.2 billion, during 2023-24, recording its fourth consecutive year of accounting losses. The bank suffered shortfalls of AU$6 billion in 2022-23, a record AU$36.7 billion in 2021-22, and AU$4.3 billion in 2020-21.

Critics of the 3% buffer said that it prevented potential borrowers from obtaining home loans because it required them to demonstrate the ability to manage a much higher mortgage than the set interest rates.

The IMF revised its 2025 forecast for Australia's consumer price index to 3.6%, a significant increase from its previous 2.8% projection.

In addition, frustrated frontline workers, combined with inefficient tools and outdated IT systems, are costing Australia an estimated AU$29.5 billion in lost productivity gains.

When asked about policy changes that could lower living costs, 64% of respondents suggested increasing competition among the major supermarkets and reducing utility costs. While, 60% called for lower medical expenses, 58% advocated for faster wage growth.

Australia's economy added 64,100 jobs in September, whilst the prediction was of 25,000. The key driving factor of the growth was 51,600 new full-time positions.

Albanese announced that the government will soon legislate "specific prohibitions of a range of dodgy practices," under the Australian consumer law aimed at improving fair competition and transparent pricing, and alleviating the financial pressures faced by the country's residents.

Foodbank chief executive officer Breanna Casey stated 48% of low-income households were now experiencing food insecurity, with half the number spending less on essentials such as fresh produce and protein.

The Australian government was investing heavily to address housing affordability issues in Queensland, with a whopping AU$845 million allocated to build over 1,000 new homes across seven locations in and around Brisbane. These locations include Stones Corner, Woolloongabba, Chermside, Redcliffe, Toowoomba, and Southport.

Sydney and Brisbane saw the highest number of new suburbs reporting homes and units priced above AU$1 million, with 46 new suburbs added in each city.

The IMF noted in its statement that the Australian economy will likely experience a moderate slowdown in 2024, with a growth rate of 1.2%. The scenario will probably improve in 2025, with the growth rate jumping to 2.1% straight.

Treasurer Cameron Dick put the cost of setting up the energy retailer at about AU$1.4 million adding that it would help people save up to 6% of their energy bills.

The latest figures boosted Australian dollar by 0.25%, bringing it to AU$0.6930, just shy of its 1.5-year peak of AU$0.6943.

Announcing the funding, Prime Minister Anthony Albanese said his government wanted to crack down on "misleading and deceptive pricing practices and unconscionable conduct.

Chalmers believes the recent stimulus measures from China, including its decision to cut interest rates and inject liquidity through mortgage refinancing could potentially boost steel demand, leading to an increase in iron ore prices.

Besides low spending, the government stated strong commodity prices and a larger income tax as contributing to the two consecutive surpluses. The government also saved by paying less to the states and territories.

The Supermarkets Inquiry Interim Report by the Australian Competition and Consumer Commission (AICCC) found that the country's biggest grocery chains, Coles and Woolworths, were acting as "oligopoly," limiting the incentive to compete on price.

The Financial Stability Review reported a rising number of mortgage holders, who were defaulting on home loans and more people opting to sell their homes to escape repayment.

The results of its latest supermarket pricing study, tabled after comparing prices of 14 common grocery items across 104 stores nationwide, found Aldi to be cheaper by at least AU$18, while compared to Coles or Woolworths.

The core consumer price inflation (CPI), which removed volatile price movers, also fell from 3.7% in July to 3%.

"While headline inflation will decline for a time, underlying inflation is more indicative of inflation momentum, and it remains too high," the board said in a statement. "Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range."

"The Reserve Bank should lower interest rates tomorrow and if they don't, the Treasurer should use his existing powers to bring down interest rates and relieve pressure on mortgage holders," Greens demanded.