Christmas rate cut hopes slayed as inflation holds firm
Energy rebates have lowered Australia's headline inflation rate, but the Reserve Bank remains focused on underlying price pressures.
The economy
Australia's budget fortunes are shifting, with Deloitte Access Economics predicting a deeper deficit than predicted in the May budget.
Falling iron ore prices and a weaker labour market will weigh on this year's revenue upgrades, the federal treasurer says.
The generational spending gap is not going anywhere despite cheaper petrol, power and other essential items as younger people continue to tighten their belts.
The economy
Trade talks start as world leaders look for trump card
Donald Trump isn't even at the APEC economic summit where his comments on trade tariffs are worrying leaders, but one envoy says speculation isn't helpful.
Update
Jobs still bright spot despite softer employment growth
Roughly 15,900 jobs were added to the economy last month, falling short of expectations, as the jobless rate remained steady at 4.1 per cent.
The economy
Annual wage growth for workers drops to 3.5 per cent
Australia's wage price index has lifted 0.8 per cent in the September quarter, a little below expectations and taking the annual rate to 3.5 per cent.
Treasurer Jim Chalmers believes Australia is well placed to deal with global financial shocks despite the looming threat of US tariffs.
The re-election of Donald Trump as US president could have "adverse implications" for the Australian economy but it has not changed the RBA's view on inflation.
Interest rates have been kept on hold for almost a year and are broadly expected to stay there until cuts start in early 2025, provided inflation keeps easing.
More was spent on household goods and meals out last month, while less money was funnelled into department stores, clothes and food retailing.
Finance Minister Katy Gallagher has hinted further cost-of-living measures are being considered after inflation fell within the Reserve Bank's target range.
Annual inflation has sunk to 2.8 per cent, the lowest rate in more than three-and-a-half years.
Unsettling global dynamics could undermine chances of soft landings globally and put Australia's fortunes at risk, warns the federal treasurer.
Much is riding on quarterly inflation data out next week as Australia's slow progress by international standards has Labor defending its economic record.
Australia is facing ongoing economic challenges as Labor holds out hope interest rates will come down before the federal election.
Eighty per cent of Australian employees are more concerned about living costs than being satisfied in their work.
The ASX200 has broken its previous record high set on Tuesday as a strong jobs report casts doubt on the odds of an interest rate cut.
Australia's economy produced another 64,100 jobs in September, with the unemployment rate holding at 4.1 per cent on the statistics bureau's official count.
