Household spending flat as RBA weighs rate rise in a few hours
Household spending stalled in August after strong gains in June and July. The result gives the RBA some evidence demand is slowing, but underlying spending and inflation remain firm.
Topic
Monetary Policy
A collection of 4 issues
Background to the RBA decision today at 2.30pm
The RBA meets tomorrow with underlying inflation at 3.6%, unemployment at 4.6% and financial markets expecting another interest-rate increase. Here are the key economic numbers.
Background: The Fed inflation target
The Fed's 2% inflation target sounds simple. In practice, US monetary policy has evolved from Volcker's war on inflation to average inflation targeting and, since 2025, back to flexible inflation targeting.
Why the Fed just raised rates
The Federal Reserve has raised rates for the first time since 2023. Persistent inflation explains the economics, but Kevin Warsh’s appointment by Donald Trump makes the politics unusually significant.