In-case-you-missed-it Monday: the real stories that mattered in the financial papers this week.
Inflation just won’t die
In more bad news for those praying for rate cuts asap, inflation came in hotter than expected this month (1.0% vs 0.8% expected.) This now has inflation running hotter than the RBA’s most recent forecasts.
Services inflation remains the fly in the ointment, with services inflation in Australia following services inflation in America higher.
And the big kicker is rental inflation, which we know has to push higher from here, since this is the price of the stock of rental properties, will the flow of new contracts in Corelogic’s rental data continues to run hot.
But Rate Cuts Still Coming
While a hotter than expected inflation outlook pushes back the timetable for rate cuts in Australia a few months, I still believe they’re coming. When you look at the IMF’s growth projections, the entire globe is slowing down, and advanced economies are practically flatlining.
Central Banks will be forced to ack at some point. In fact, the turning point may have already arrived. In March, the G10 central banks, taken altogether, eased for the first time since Covid.
Greece for the Win
Finally, the Greek economy is making a solid come-back. It got smashed to smithereens after the GFC, but since Covid, has outperformed Europe’s star mid-fielder, Germany. There’s still a way back, but this is great news for the Greek people.
And that’s (pretty much) everything worth knowing in markets this week.
JG.
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