As winter sets in, discussions around the 2024-25 Federal Budget intensify, with a focus on finding balance between alleviating cost of living pressures without fueling inflation. Consumer spending remains subdued, reflected in a 0.4% decline in retail sales in March amid a 3.6% annual increase in the Consumer Price Index, particularly impacting education, health, housing, and food prices. Market activity reflects anticipation of interest rate hikes in both Australia and the US, with the S&P/ASX 200 down 2.5% for April, while the Australian dollar shows resilience against a strengthening US dollar, influenced partly by the weakening Japanese yen.

Read more in our May Newsletter here