IN BRIEF
- More than 76,000 jobs were created last month, keeping pressure on the Reserve Bank over inflation.
- Record avocado production is expected to keep supermarket prices lower for longer.
A rate rise warning amid a strong jobs market, super news for retirees despite a property downturn, and records broken for Australia’s avocado industry.
SBS Finance Editor Ricardo Gonçalves takes a look at three finance news stories of the week and explains how they’ll impact you.
Superannuation funds have delivered another standout year for Australians, but experts say investors shouldn't expect these returns to continue.
Australia's jobs market remains stronger than expected, fuelling speculation the Reserve Bank could raise interest rates again, and avocado lovers have been given some welcome news with prices tipped to stay low.
Don't expect another super year like this
News that makes sense
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Australia's superannuation funds have delivered another impressive year, but experts are warning members not to expect these returns every year.
New data from superannuation research firm Chant West shows the median growth fund returned 9.5 per cent over the past financial year, marking four consecutive years of returns above 9 per cent.
Chant West head of superannuation investment Mano Mohankumar told the SBS On the Money podcast that while recent performance has been strong, it's unlikely to continue indefinitely.
Strong international sharemarket gains helped drive returns, with global shares rising more than 25 per cent over the year. Australian shares also posted solid gains of around 6 per cent.
One of the few weaker spots was Australian listed property, which comes as new figures from Domain showed national median house and unit prices recorded their first quarterly decline in more than three years.
Australia's jobs market remains a sticking point for the Reserve Bank
The chance of another interest rate rise increased this week after stronger-than-expected employment figures.
More than 76,000 jobs were created last month, while the unemployment rate held steady at 4.4 per cent because more Australians entered the workforce, pushing the participation rate to a one-year high of 67 per cent.
The participation rate measures the share of working-age Australians who are either employed or actively looking for work. Economists say the increase could reflect ongoing demand for workers or more people seeking employment as cost of living pressures persist.
Citi Australia senior economist Faraz Syed told the SBS On the Money podcast the key concern for the Reserve Bank is whether a tight labour market starts driving wages significantly higher.
The next official inflation figures will be released on Wednesday, ahead of the Reserve Bank's next board meeting on 10 August.
Good news for avocado lovers
If you've noticed cheaper avocados at the supermarket, that trend looks set to continue.
New research from Rabobank found Australian avocado production has rebounded strongly, with both supply and exports expected to reach record highs.
The increase has been driven by expanding orchards and improving yields as newer plantings mature.
While that's welcome news for growers exporting to markets including Hong Kong, Singapore and Malaysia, it's also good news for Australian shoppers, with abundant supply expected to keep retail avocado prices relatively low compared with historical standards.
That's this week's SBS On the Money Wrap.
We'll be taking a break for a few weeks, but the On the Money podcast will still be breaking down the latest every weekday. You can tune in here or wherever you get your podcasts.
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