Australians are struggling to make ends meet. This is not an economy in need of more rate rises

The latest retail figures show there is not an excess of demand that needs to be stomped on by interest rate rises, Greg Jericho writes. Photograph: The Guardian

The June quarter inflation figures released yesterday brought a sigh of relief from those worried the Reserve Bank might be about to raise rates next week. But the data on retail spending showed that, regardless of what inflation is doing, Australians are doing it tough.

The inflation figures get all the headlines but, for me, the retail trade figures are just as important.