US consumer confidence rises while Australians grow gloomier. Rising rice prices are expected to feed into Vietnam inflation data. Aussies are drinking cheaper booze. We look at what that might tell the RBA.
In our bonus deep dive interview, ANZ Head of G3 Economics Brian Martin explains how car insurance pricing in the US has been causing issues for headline CPI inflation, and what it could mean for the Fed.
5 things to know:
US consumer confidence data was mixed overnight, with headline confidence rebounding after three monthly falls, but recession fears rising. ANZ Economist Bansi Madhavani says US consumers in still in healthy shape overall.
Consumer confidence in Australia dropped 1.8 points last week, back to its 2024 low, according to the ANZ-Roy Morgan survey. ANZ Senior Economist Blair Chapman was surprised it dropped so quickly after the Federal Budget.
Australian retail sales rose a weaker-than-forecast 0.1% in April from March. Spending was weaker across most categories, including for alcohol, with statisticians noting people are increasingly opting for cheaper types of alcohol.
Australia’s CPI figures for April later today are expected to show annual inflation easing to 3.4% from 3.5% in March. ANZ Senior Economist Catherine Birch says April is typically solid due to seasonal rises in clothing and footwear prices.
Vietnam releases May CPI data later today. ANZ Economist Arindam Chakraborty says inflation has been on an upward trend since the start of the year, testing the Government’s 4% to 4.5% target range. Surging rice prices are expected to feed into an annual rate of 4.6%, Arindam says.
Cheers
Bernard
PS: Catch you tomorrow with reaction to that Australian price data.
