Retail sales add to rate rise expectatons

The Australian Bureau of Statistics (ABS) reported retail sales for the month of June rose a seasonally adjusted 1.4%. Economists were forecasting a rise of 1.0% The increase follows a revised 0.3% decline in May and a 0.3% decline in April.

In volume terms, for the 3 months ending June 30th retail sales fell a seasonally adjusted 0.2% from the March quarter.

So after a couple lack-lustre months retail sales have bounced back. Along with strong credit and housing approval numbers and signs that inflation is on the march again the chances of a rate rise at next week's RBA meeting are looking more likely.