Aug 17, 2022

Business Update – 17 August 2022

Welcome back to our Weekly Digest. Read on for the latest updates and some ideas to help us all move forward.

Economist predicts rising interest rates will soon finally ease

Independent economist Saul Eslake predicts that interest rates will settle somewhere around 2.5% by the end of the year.

Vegetable prices set to get back on track

Growers are reporting that they are starting to catch up after flooding devastated farms in large areas of NSW and Queensland. The floods caused the price of staples such as lettuce to skyrocket, but now that crops are recovering, prices are expected to normalise.

Signs emerge that the rental crisis has peaked, but many renters in trouble as costs are at an all-time high

The pandemic brought a slew of changes in the rental market as people transformed extra bedrooms into offices and prioritised having their own space. With rental rates hovering at less than 1 percent and not shrinking further after extreme rental price hikes, some think the crisis has finally peaked.

Supermarket network owner gives stores instruction to stop raising food prices

Metcash, the company that runs both IGA and Foodland, has told its stores not to increase prices further even as inflation soars because it will actually make them less money.

Tourism not recovering as expected

Despite the doors being open for tourists, numbers are still way lower than expected when compared to pre-pandemic levels. Some theories for the low number of visitors include international conflicts and fewer Chinese nationals choosing to holiday in Australia.

A whopping 9/10 Australian households is struggling to manage regular bills

A new Choice survey has revealed that 90% of respondents reported struggling to manage their day-to-day household bills with the rising cost of living. Health insurance and utilities are the biggest burdens.

RBA explores digital currency options

With crypto in the news so often lately, and not for positive reasons, why is the RBA considering its use for itself? A year-long research project with the Digital Finance Cooperative Research Centre is underway to determine the viability of a digital currency.

PM orders probe into Morrison’s ministry grab during pandemic

The government is investigating claims that former prime minister Scott Morrison secretly gave himself powers to jointly run the health, finance and resources ministries during the COVID-19 pandemic.

26-year-old businessman sets record with house purchase

Millennial crypto tycoon Ed Craven has set a new real estate record with the purchase of an $88 million Melbourne mansion. It is the highest price paid for a home in Victoria, and third highest property sale in Australia.

How and when to ask for a pay rise

It can be difficult to do, but with the cost of living and inflation both rising, it might be a good idea to consider asking for one. A roundup of tips for getting the conversation started can be found here.

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