Australia April consumer prices rise 2.4% y/y, above forecasts
SYDNEY, May 28 (Reuters) - Australian consumer prices in April rose above forecasts as higher insurance and holiday costs offset a drop in petrol, while core inflation edged higher in a slightly disappointing report.
Data from the Australian Bureau of Statistics on Wednesday showed the monthly consumer price index (CPI) rose 2.4% in April compared to a year earlier, unchanged from March but above median forecasts of 2.3%. Estimates had ranged widely from 1.9% to 2.5%.
The trimmed mean measure of core inflation increased by an annual rate of 2.8% in April, up from 2.7% in March. A measure excluding volatile items and holiday travel also picked up to 2.8%, from 2.6%.
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Reuters
an hour ago
- Reuters
Iran tensions make thermal coal a winner against pricier LNG
LAUNCESTON, Australia, June 23 (Reuters) - Thermal coal may end up as a major beneficiary of escalating hostilities in the Middle East, as the fuel used to generate electricity becomes cheaper than one of its main competitors liquefied natural gas (LNG). Much of the focus of the potential fallout from the conflict between Israel, and now the United States, and Iran is the threat to crude oil and refined fuels shipped through the Strait of Hormuz. But all of Qatar's LNG also goes through the narrow waterway separating the gulfs of Persia and Oman, and this amounts to almost 20% of the global seaborne supply of the super-chilled fuel. While there has yet to be any disruption of Qatar's LNG, the mere threat that Iran may attempt to block the strait or attack shipping has seen spot LNG prices rise in Asia, the biggest market. LNG for delivery to North Asia rose to $14 per million British thermal units (mmBtu) in the week to June 20, a four-month high and up from $12.6 the prior week. The weekly price assessment also came before the United States joined Israel's bombing campaign against Iran, with President Donald Trump claiming on June 21 that the strikes had "completely and totally obliterated" three nuclear facilities. The involvement of the United States makes it more likely that LNG prices will continue to rise to reflect the increased risk premium. But even at the current level, LNG is no longer competitive against thermal coal in the two major markets where fuel-switching can occur, Japan and South Korea. The price of Australian thermal coal with an energy content of 6,000 kilocalories per kilogram at Newcastle Port rose to a four-month high of $109.41 a metric ton in the week to June 20, according to data from globalCOAL. This is the grade of thermal coal most used by Japan and South Korea, as well as Taiwan. Using LSEG data to convert the price of coal into million British thermal units shows that Australia's Newcastle benchmark is currently around $12.18 per mmBtu, or a 13% discount to the spot LNG price. The most recent low for spot LNG was in early May when the price dipped to $11 per mmBtu, at which point it was cheaper than Newcastle coal, which was $11.47. But spot LNG prices have rallied harder than those for coal in recent weeks, a trend that is likely to continue for as long as tensions remain high in the Middle East. Since it has only been 10 days since Israel started its bombing campaign against Iran it's still too early to see a sustained trend in the volumes of coal being purchased by Japan and South Korea. However, there are some signs that coal imports are starting to increase, with commodity analysts Kpler tracking Japan's arrivals at 6.57 million tons in June, up from 6.39 million in May. More interestingly, Kpler is already estimating that Japan's thermal coal imports will jump to 7.23 million tons, which would be the most since March. It's likely that the July number will be revised higher as more cargoes are assessed. There is also an element of seasonality to Japan's thermal coal imports, which tend to rise in both the winter and summer peak demand periods. This means it will be important to look at the year-on-year changes to see if Asia's third-biggest coal buyer is indeed buying more of the fuel. Japan imported 10.05 million tons of thermal coal in July last year, and given that the volume already assessed for this coming July is more than 70% of that total, it's likely that imports next month will show an increase from July 2024. It's also worth noting that Asia's two biggest coal importers, China and India, don't have much ability to swap LNG for coal given their limited use of natural gas for power generation. But on a longer-term note, both countries are likely to view the current unrest in the Middle East as another compelling reason to reduce dependency on imported crude oil and LNG as rapidly as possible. If that means using their vast domestic reserves of coal, supplemented by imports, to electrify transportation at a faster pace, it's likely that this is a path they will pursue irrespective of climate change concerns. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. The views expressed here are those of the author, a columnist for Reuters.
Daily Mail
2 hours ago
- Daily Mail
American energy expert's brutal message to Anthony Albanese's government: 'What is wrong with you Australians?'
An American energy expert has delivered a blistering verdict on Australia's energy policy describing it as 'baffling' and potentially disastrous for the nation's economy. During an interview on with Peta Credlin, veteran energy analyst Robert Bryce, who is on a sold out national tour to blow the lid off the true cost of net zero, said the policy was destroying Australia's economic future. 'What is wrong with you Australians? You have natural resources that are the envy of the rest of world,' he said. 'You're the Saudi Arabia of the Southern Hemisphere, you export seven times more coal than you consume and yet you don't want to burn coal. 'You have nearly 30 per cent of the world's uranium and you won't build nuclear reactors. 'You export three times more natural gas in the form of LNG than you consume, and you won't drill for gas. 'I've got no dog in this fight, but it just is incredible to see how bad the policy is here in such a resource-rich country.' Australia's net zero policy aimed to reduce greenhouse gas emissions to virtually zero by 2050 through a transition to renewables, storage, and gas-backup. Mr Bryce warned that Australia's push toward net‑zero was placing a heavy economic strain on ordinary households, as soaring power prices ripple through the economy driving up costs in key industries and inflating prices for everything from construction to groceries. He said earlier this month Victoria used 13 per cent of its gas in three days after alternative energy sources failed to produce the level of energy required to power the state. 'How many warnings do you need before your policymakers wake up and smell the coffee?,' he said. 'Even if you're not serious about climate change - natural gas to nuclear is the way forward.' Mr Bryce said countries around the world were looking to nuclear energy including Poland, France and Germany. 'There's more energy realism in the rest of the world, and unfortunately, for some reason, it hasn't come all the way down under yet,' he said. 'Again, I want the best for Australia. I've got no dog in this fight, but it just is incredible to see how bad the policy is here in such a resource-rich country.' Power bill increases of more than nine per cent have been locked in for some Australian households from July 1 with high demand and network outages blamed for the steep wholesale prices feeding into higher retail prices, along with low levels of renewable energy as Australian governments try to phase out coal-fired power stations. Meanwhile there was a grim warning last week from the boss of Transgrid, Australia's largest electricity transmission provider, that the nation's power grid was dangerously light and needed back-up buffers like coal. Chief executive Brett Redman told The Australian newspaper it was time to prioritise putting more buffer back into the system. 'We've really stripped the system very, very thin,' he said. 'The probability of more and more say failures of units and coal fired generators or unforeseen weather events, you name it, it's going to happen. 'On those days where things go wrong, no one's going to want to hear explained to them how statistically, that seemed very unlikely... even as people are taking cold showers.'
Daily Mail
3 hours ago
- Daily Mail
I like Aussies but there is one huge issue with your culture I just can't get past: 'Sorry if you're offended'
A Swedish-born former Australian resident in his 20s has made an observation about Aussie attitudes that has sparked a heated online discussion. The young man, who 'partially grew up' living and attending school in Queensland before moving back to Europe, shared his observation about the apparent lack of value Australians place on education and intellectual pursuits. Taking to Reddit, he shared his views in an 'Ask An Aussie' subreddit post titled: 'What is the cause of Australian anti-intellectualism?' 'I would like to begin by saying that I like Australia and Australians, and I hope I don't come across as offensive. This is just one aspect of Australian society,' he began. 'In my experience, people in Australia tend to not value education so much. 'When they do, it's usually because it leads to a higher-paying job. Knowledge for the sake of knowing is not really valued, the dominating idea being that education only matters if it can be capitalised on.' The lengthy post saw the man explain that he came to this conclusion after leaving Australia and moving back to Sweden, and later France. During his time attending school Down Under, the self-declared 'bookish' man said he 'often felt estranged from other students' on account of his thirst for learning. He added that he struggled to find like-minded 'people who were interested in literature, poetry and even politics'. 'Very few read books in their free time,' he added. The post concluded by asking Aussies to weigh in on this perceived anti-intellectual attitude and offer some explanations. The recent post quickly lit up with over 1,500 responses. Perhaps surprisingly, many were from Aussies who agreed with aspects of the original poster's sentiment. The reply that received the most upvotes surmised the issue as stemming from a broader Australian social attitude of wanting to fit in. The short but popular comment explained: 'In high school, it doesn't pay to be scholastic or otherwise different or you get mocked. Sad really, and this often carries forward into everyday life.' 'Too well spoken? Pronounce your words correctly? You might get bullied,' one replied. A different but related explanation was also suggested in regard to the value Australian culture places on sporting achievements. Many commenters highlighted that while academic prowess could sometimes be a source of ridicule during schooling years, Australian students were, however, encouraged to proudly excel at sports. One commenter said they were 'made fun of' at school for being 'studious and bad at sports'. Another raised the idea more broadly, writing in part that Australia 'prizes physical pursuits over intellectual ones'. However, many were at pains to explain that Australians do indeed hold value in the pursuit of education. The difference, however, is that many Australians are conscious not to show off for being 'too 'clue-y' or 'booksmart' because it projects an air of being 'an arrogant a***hole who is far too "up themselves"'. '[T]here's absolutely people around in Australia who enjoy intellectual pursuits, but keep low key about it,' read one reply. 'We have high rates of education, but we hate class distinction,' explained another response. 'If people feel like you are using jargon or bigger words than you need to, they will call you on it because they will assume you are putting on airs.' This also led to commentary about the pervasiveness of 'tall poppy syndrome' in Australian society, and how it discouraged those who were intellectually inclined from outwardly expressing these interests. 'I think a lot of Australian identity is shaped by the tall poppy syndrome and rebellion against elitism, which many Australians tie to intellectualism,' read part of one longer post. A financial argument also offered an interesting explanation for the perceived lack of value Australians place on a generalised pursuit of knowledge. 'Until recently you could get an extremely well-paying job in Australia with minimal, if any, education, mostly through mining. This led to a lot of people dismissing education as pointless, useless and expensive,' explained one commenter. Another agreed, writing: 'I've got mates without degrees or school-completion certificates who earn filthy money for mining companies, oil refineries etc.' 'The ability to earn money – lots of it – is valued much, much more highly than intelligence,' read part of another reply. But many commenters felt this attribute was actually something to 'love' about Australia, because it meant that 'unskilled workers can make good money and have a good life'. 'I think Australia tends to be fairly egalitarian,' one wrote. 'So in the same way we don't look up to intellectual jobs, we don't look down on trades or manual labour jobs.' To this point, even the original poster agreed that this was true of Australian society. Others pointed to the fact that while higher education was free in Sweden, in Australia university attracts huge fees, which has financial implications. 'Education is much cheaper in Europe. To get it here, you go into debt for a very long time. That means you need to get your money's worth,' one explained. 'Knowledge, for the sake of knowing, doesn't put food on the table or a roof over your head,' added another. Ultimately, many responders surmised that this perceived anti-intellectual attitude held by Australians was probably a result of a combination of the aforementioned factors. One response reflected: 'Intellectualism is considered 'navel-gazing' - sort of a self-indulgent waste of time. Others have mentioned tall-poppy syndrome, and I think that's partially true.' They concluded that this had created a feeling that 'non-productive' or 'non-capitalisable' styles of educational inquiry were 'frivolous'.
