According to Deloitte Access Economics, Australian retailers face a likely Christmas season due to rising inflation and dampened expectations of interest rate cuts. Partner David Rambins noted that the rise in inflation in the September quarter, according to October data, has weighed on household purchasing power and dampened hopes for immediate rate cuts. This has led to many people wishing for ‘good inflation figures’ as a high Christmas wish. Additionally, a stagnant labor market can introduce concerns about job security, further affecting consumer sentiment.
Despite these challenges, Rambins observes that Australians are looking for value in practice, taking advantage of early sales. The Black Friday sales event, which now often extends a month’s progress, has made November a prime period for Christmas shopping. This suggests that consumers are still willing to spend, but are price conscious.
While the immediate outlook appears subdued, Deloitte predicts a return to strong retail growth in the coming years. As economic conditions stabilize, steady growth and improvements in the cost of living are expected to allow consumers to spend more freely.
Deloitte Access Economics provides economic analysis and consulting services to businesses and governments. They are part of Deloitte Touche Tohmatsu, a global professional services network.
Post Comments: 35
