June 2024 Insights
With Winter now officially underway, some might be heading north to warm up and others may lean into the cold on the snowfields. Whichever you choose, don’t forget the approaching end of financial year.
A slight increase in the Consumer Price Index to 3.6% from 3.5% in March, has led some economists to predict we’ll be waiting longer for the first official interest rate cuts, perhaps until the end of next year, with little to no chance of a rate rise in the meantime. While inflation has been relatively stable over the past five months, this is the second monthly increase in a row. The biggest price increases were in the housing, food and beverages, alcohol and tobacco, and transport sectors. Retail spending remains weak. The 0.1% increase in turnover in April wasn’t enough to make up for the 0.4% drop in March.
Higher-than-expected inflation figures saw Australian share prices take a tumble after reaching a welcome high mid-month. The ASX200 finished the month on a positive note, slightly higher for May. In the US, troubles in the tech sector and a global bond sell-off resulted in small losses on the Dow, Nasdaq, and the S&P 500. Meanwhile, European markets in the United Kingdom, France, and Germany also finished the month on a low.
A strong US dollar, along with the uptick in Australia’s inflation data, saw the Australian dollar fall from a mid-month peak of just over US 67 cents.
If there’s something affecting your financial situation that you’d like to discuss, please don’t hesitate to reach out to our team.
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