Retail sales weakness creating a ‘disinflationary force’

Independent economist Saul Eslake says the weakness in retail sales is a “disinflationary force” due to weakening demand.

Treasury forecasts seem to suggest that inflation will fall by Christmas – a year faster than the latest figures from the Reserve Bank.

“Although it’s not nice to see people having to cut back spending, whether it’s on discretionary items or essential,” Mr Eslake said.

“That’s part of the path back towards acceptably low inflation.”

Видео Retail sales weakness creating a ‘disinflationary force’ канала Sky News Australia