In April, Australian household spending registered only a marginal increase, underscoring a persistent lag in consumer demand relative to income growth. This trend emerges despite the Reserve Bank of Australia’s (RBA) recent interest rate cuts and a general easing of inflationary pressures. The Australian Bureau of Statistics (ABS) reported that the seasonally adjusted Monthly Household Spending Indicator (MHSI) rose a mere 0.1% in April, following a 0.1% decline in March. The subdued consumption figures highlight ongoing challenges in stimulating domestic demand, a critical driver of Australia’s economic growth.

Australia’s Fair Work Commission (FWC) has announced a 3.5% increase to the national minimum wage, effective from July 1, 2025. The decision directly impacts approximately 2.6 million of the country's lowest-paid workers and comes at a time when inflationary pressures are receding, giving policymakers room to support real income growth without reigniting price instability.