- Oil reached its highest level since May, with Brent touching US$112/bbl intraday before settling around US$109/bbl, renewing concerns over the pass-through to inflation.
- Locally, household spending rose 1.1% in September, with similar gains across discretionary and non-discretionary categories. Non-discretionary spending rose 1.2%, led by an 8.3% surge in fuel as the Middle East energy shock continues to flow through to retail prices.
- RBA Deputy Governor Hauser speaks at a Citi conference this morning, with inflation pressures in focus ahead of next week’s quarterly CPI, which is expected to remain elevated and come in higher than August.
- Hauser has flagged that capacity pressures in the economy are “already elevated and probably more elevated than we thought”, and that the pass-through from higher oil prices, while yet to be fully realised, should be substantial and will need to be dealt with.
