In economic and market news, new data show that inflation slowed further to 4.3 per cent in the year to end-November. This outturn was down from 4.9 per cent in October, and said to be the lowest in two years. The softening in inflation was driven in part by outright falls in the price of clothes, appliances, and supermarket staples like lamb and beef over the past 12 months.
In economic and market news, new data show that there was a record amount of retail spending in Australia during November 2023. The $35.6bn spent in the shops represented a stronger-than-expected 2 per cent growth in seasonally adjusted terms, after a fall of 0.4 per cent in October.
In economic and market news this week, a 14 per cent drop in oil prices since November is being taken as a precursor to a significant drop in inflation. Economists are predicting that inflation in Australia will fall to the lowest levels since 2021 off the back of this drop, somewhat relieving cost of living pressures.
In Australian economics news, new data show that unemployment hit an 18-month high of 3.9 per cent in November. This increase from (a revised) 3.8 per cent in October was down to surge in people entering the work force, not all of whom were able to find work.
In Australian news this week, it was revealed that the economy grew by just 0.2 per cent in the September quarter and 2.1 per cent over the year to end-September. It was noted that, although this was the eighth straight rise in quarterly GDP, growth has slowed over 2023 in response to the series of interest rate increases.
In Australian economic news, the Reserve Bank of Australia decided to keep its official interest rate unchanged at 4.35 per cent at its meeting yesterday. The statement that accompanied the decision suggested that there had been limited information released since its decision to raise the cash rate in early November, and what had been received was broadly in line with its expectations.
In a quiet week for market and economic news, there has been a focus on a change in tone from Reserve Bank of Australia about the need for further interest rises to slow inflation.
Stoic Venture Capital’s investment partner Uniseed made an exciting announcement this week. Five years ago Stoic and Uniseed started a partnership journey to help fund the commercialisation of life science and deeptech university start-ups.
In market news this week, two of the four major Australian banks posted record profits in the face of sluggish growth in the economy. Both also noted that distressed debt remained at low levels despite the repeated increases in interest rates.
