The pressure comes as the Reserve Bank tries to quell demand to curb an almost 30-year high inflation rate amid a 48-year low 3.5 per cent jobless rate, record terms of trade and trade surpluses.
NAB chief economist Alan Oster said the July data suggested the economy could be running up against the limits of its capacity, and despite global and domestic headwinds, inflationary pressures were continuing to build. Business confidence and conditions both rose sharply last month to above long-run averages, according to NAB, though Mr Oster said inflation and interest rates were clouding the outlook for businesses and consumers.following the RBA’s third straight half a percentage point interest rate rise to 1.
High-frequency ANZ spending data, excluding petrol, was steady in early August , which the bank said seemed to be following a similar seasonal pattern as past years. Reflecting strong demand for key commodities including iron ore, coal and LNG, which pushed the terms of trade to a record in June, mining turnover rose 5.7 per cent in June to be 42.3 per cent higher through the year.