Green shoots are showing in the Australian economy, but retailers are set for further pain in 2024

Australian consumers and workers may benefit from improved economic conditions in 2024, yet retailers can expect current hardships to continue, according to new forecasts published by Deloitte Access Economics.

The agency’s quarterly outlook, published Tuesday, suggests there are green shoots sprouting after 12 months defined by significant inflation and interest rate hikes.

Its forecasts suggest the headline Consumer Price Index (CPI), which rose 6% in the 12 months to the June quarter, “may moderate to 4.0% over the year to December 2023” and fall back into the Reserve Bank of Australia’s target band of between 2% and 3%.

According to Deloitte, the causes of that decline are twofold: supply-side disruptions to key resources, stoked by the lingering pandemic restrictions and international conflict alike, have been mediated.