Episode#26 | September 2026: Better than Feared

Great.

Thank you.

That's a great introduction.

So really bottom line, better than feared.

But of course, let's start talking about the outlook a little bit.

One of the things that we grapple with, as do other investors in Australian markets and the RBAs also in this boat, what we're all grappling with is the inflation story, the persistence of underlying inflation and cost pressures.

What were some of the insights that you got during the reporting season in regard to these issues?

Oh, look, Rob, I think in short, I'd say inflation is everywhere.

And it really came through in the higher costs that companies were talking about, whether it be energy costs, transport, labour costs, insurance, higher commodity price, chemical... inputs into businesses and even construction costs.

So it's very clear that costs are a big issue.

And we also saw that very strongly, I think, in the demand comments from many companies.

And there's clear evidence that cost of living pressures are being felt.

The household economy is slowing.

That's been not only just due to the interest rate increases, but clearly all through, we're seeing it through mortgage applications, residential sales and the like.

So overall, Rob, I'd say that there was evidence of tightening in the financial conditions and that inflation remains a persistent pressure.