No move on interest rates as staples rise

The Reserve Bank of Australia has again maintained the official cash rate at 3.5%, despite the largest decline in retail spending in seven years.

The Australian Bureau of Statistics figures are further proof Australians are reining in their spending. It’s not surprising considering the shrinking manufacturing sector and a mid-year drop in job advertisements.

However, unofficial inflation figures released by TD Securities – Melbourne Institute have noted a rise of 0.6% in August on top of the 0.2% June increase. The marginal increases have been attributed to the rising cost of essentials such as fruit, vegetables and petrol.

For the RBA’s full rates decision visit www.rba.gov.au/media-releases/2012/mr-12-25.html