AU Weekly Wrap | Monthly Inflation Rate Accelerates; BHP Abandons $50 Billion Anglo American Deal

Retail sales in Australia rose at a slower-than-expected pace as shoppers remained wary in the face of high consumer prices, according to data released today by the Australian Bureau of Statistics.

Australian retail sales remained weak in April, highlighting the plight of consumers in the face of elevated interest rates and rising costs, while signaling a sluggish economy for some time yet.

Some volatility was introduced on reports that China's big cities cut downpayment ratios and mortgage rates for homebuyers. The easing of requirements comes amid the Chinese government's broad property rescue package announced earlier this month, including funding to help local governments to buy unsold homes from developers.

Australia's monthly inflation rate accelerated to 3.6% year-on-year in April from 3.5% in March, which defied market expectations for a slowdown to 3.4% and was the highest since November.

Australia's high inflation problem seems likely to persist through this year, pushing thoughts of an interest-rate cut before 2025 "virtually out the door," says Craig Vardy, head of fixed income at BlackRock.