The economy is definitely in a state of transition at the moment – which, not coincidentally, is the main theme of the stories in this month’s newsletter:

• Retail sales volumes decline
• Instant asset write-off updated
• Govt says inflation has peaked
• Consumers keen to go green: survey

Retailers are booking higher revenues but making fewer sales, according to the latest data from the Australian Bureau of Statistics.

After retail sales turnover fell to $34.4 billion in December, it rose to $35.1 billion in January, $35.2 billion in February and $35.3 billion in March.

However, sales volumes actually fell 0.6% during the same quarter.

The reason for the apparent discrepancy is because prices simultaneously rose 0.6% over those three months.

That means retailers earned more revenue not because they made more sales but because they charged higher prices.

Interestingly, Australia’s inflation rate increased by 1.4% during the March quarter, which means retail prices actually rose at below-inflation rates.

ABS head of retail statistics Ben Dorber said the growth in retail prices during the March quarter was the slowest since September 2021.

“The slowdown in price growth was mainly due to discounts on clothing and large household items such as furniture and electronic goods, while food retailing prices continue rising,” he said.

Thanks for reading. We’re just weeks away from the new financial year, so I hope you and your business have a strong finish to FY23

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