Policymakers didn’t think people had the financial capacity to purchase ‘durable’ goods – but a rise in spending contributed to inflation

One of the first things many Australians did last year after receiving a tax refund or a lower mortgage rate was to buy an armchair, an air fryer or a coffee machine.

The purchases, evident in company earnings published this week, came after households had endured years of high living costs – and consumption had been weak up until that point.

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