Australia Retail Sales Beat Estimates, Adding to Rate Hike Case.

Australian retail sales in May exceeded expectations, increasing by 0.6% compared to the previous month. This growth was largely driven by discounts offered by retailers in response to high borrowing costs. However, retail sales are still below the levels seen in early 2023 due to rising interest rates and other cost-of-living pressures. The Reserve Bank of Australia has expressed concerns about household spending, which accounts for more than half of the country's GDP. Despite the rate hikes, inflation remains a concern, and the labor market remains tight with unemployment at around 4%. [Extracted from the article]