Merchandise imports for June were up 4 percent to $17,911 million, an increase of $621 million on May, but is unlikely to impact the RBA’s decision on rates in August.
The Australian Bureau of Statistics’ Merchandise imports data records the total imports coming into Australia for the reference month (in this case June) and the two previous months. In original terms, the June 2010 merchandise imports were $17,911 million, an increase of $621 million (4%) on the revised May 2010 merchandise imports of $17,290m, which were up on April’s figure of $16,772 million by $518 million (3% higher).
On a balance of payments basis preliminary analysis from the ABS shows that goods imports (debits) on a balance of payments basis increased $4 million in seasonally adjusted terms from $18,403m in May 2010 to $18,407m in June 2010. Intermediate and other merchandise goods rose $351 million (5%) with the fuels and lubricants component up $282 million (13%), consumption goods rose $41 million (1%). Non-monetary gold fell $240 million (28%) and capital goods fell $147 million (3%).
The increase in value of fuels and lubricants imported into Australia (13%) during June is less to do with an increase in consumption, and more to do with increases in oil prices as a result of the Gulf Crisis triggering scarcity concerns.
The key figure to strip out here for those watching the Reserve Bank of Australia’s next interest rate decision in August is the importation of consumption goods, increasing by 1% is indicative that discretionary spending is relatively static and there isn’t a lot of ‘free’ money floating around likely to bid up prices. Individuals incomes are tied up in their commitments to paying their mortgages rather than consuming more, keeping a lid on inflationary pressures and reducing the chance of an interest rate increase in the short term.
