RBA has more to do to curb inflation as retail and job markets still strong, economists say

Australians’ retail spending has remained strong, despite the climbing interest rates, leading some economists to predict the RBA will do more to cut inflation. Photograph: Anadolu Agency/Getty Images

Australia’s retail and job markets remain resilient even as interest rates increase at the fastest pace in more than three decades, raising the likelihood the Reserve Bank has more work to do to curb inflation.

Retail turnover in May rose a seasonally adjusted 0.7%, or the fastest pace since January’s monthly increase of 1.8%, the Australian Bureau of Statistics reported on Thursday. Economists had expected spending to shrink 0.1% after a flat result in April.