There was a surprise drop in unemployment in December to 4.1%, the number of jobs available increased and household spending grew.
However, these elements have also contributed to persistently increasing inflation. In a higher-than-expected result, CPI rose 3.8% in the 12 months to December, up on the November figure and exceeding forecasts by economists and the RBA.
Many commentators are now predicting at least two, and perhaps-even three, interest rate rises this year.
The Aussie dollar remains strong, finishing the month at US$0.70. It’s up 11.4% since US President Trump’s inauguration while the US dollar has suffered, falling 11.2% during the same period.
The S&P/ASX 200 climbed 1.8% in January, reaching 8,869 come month’s end, but there’s still ground to be made up to reach last October’s peak.
The Westpac–Melbourne Institute Consumer Sentiment Index slipped 1.7% lower to 92.9 in January from 94.5 in December.
