The past week has seen a further escalation of sanctions against Ukraine, this time targeting the energy sector. This has resulted in a further increase in oil prices and a decline in global stock markets. In the month of March, Australian shares were dragged down by the inability of financials to offset weakness in materials, information technology, and telecommunications stocks. In the past week, financials were the best performing sector, up 2.2 percent, led by Commonwealth Bank of Australia (CBA), which gained 5.1 percent. The Materials sector was the worst performer, down 3.4 percent, followed by Technology, which fell 1.8 percent. The Australian market outperformed the US market, with the S&P500 Index down 2.9 percent and the technology-heavy NASDAQ down another 4%. Bond yields increased sharply in response to concerns about inflation and monetary tightening. GDP is forecast to grow by around 4¼ per cent over 2022 and 2 per cent over 2023.

The impact of rising energy and food prices, as well as the possibility of supply chain disruptions, indicates that inflation has not yet peaked in many parts of the world. In Australia, underlying inflation has also increased in recent quarters and is expected to reach 314 percent in mid-2022, owing primarily to upstream cost pressures associated with strong demand in housing construction and durable goods, before easing as international and domestic supply chain constraints ease. Labor market tightening and the resulting increase in labour costs are expected to keep underlying inflation in the upper half of the target range of 2 to 3%. Headline inflation is expected to be higher than trimmed mean inflation in the near term (primarily due to higher fuel prices), but to fall back to underlying inflation after that.


Employment Outlook 2022

In labour news, Australian ANZ job advertisements increased by 8.4 percent, indicating continued strength in the labour market. By mid-2022, strong labour demand is expected to result in a lower unemployment rate and a declining rate of underemployment, as businesses increase the hours of existing employees to meet demand. The unemployment rate is expected to fall to 34% by 2022; this level of unemployment has not been seen in Australia in nearly half a century. The participation rate is expected to reach a record high in late 2022, owing to robust labour demand and longer-run structural drivers such as higher participation rates among females and older Australians.


Petrol Prices at Record High

As we are all painfully aware, the price of gasoline has increased significantly in recent weeks. Prices at Sydney’s bowsers are standard at $2.20 per litre. The ACCC said Russia’s invasion of Ukraine and the OPEC cartel’s refusal to increase crude oil production last month drove petrol prices to an eight-year high.

Oil prices have risen rapidly since US President Joe Biden banned Russian energy imports last week in an effort to punish Russia economically for its invasion of Ukraine. Russia produces approximately 7 million barrels per day, or roughly 7% of global supply. The reduced supply comes at an opportune time, as oil demand continues to grow as the global economy continues to open up as a result of the Omicron wave. Oil prices have risen as a result of increased demand and decreased supply.

Based on ABS surveys of household expenditure, CommSec calculates the average household using 35 litres of fuel per week is now spending nearly $250 per month on petrol, another record. Consumers in Australia have amassed record savings as a result of generous stimulus measures implemented during the pandemic, which will help cushion the short-term blow.


Housing Market Update

Rising mortgage rates, additional macroprudential intervention, affordability constraints, an increase in new housing supply, and an increase in property listings are expected to significantly cool the hot housing market in 2022, followed by a moderate downturn in 2023, economists and housing market analysts forecast.

The Corelogic national home value index increased by 0.6 percent in February, extending the housing market’s into the 17th consecutive month of increasing house value. While housing prices continue to rise in general, the rate of growth in the national index has slowed significantly since April of last year.

According to Corelogic, early indications suggest that housing markets will begin 2022 on a similar path to late last year, with house prices continuing to rise broadly but at a slower pace than in early 2021. However, if the 1.1% increase in January is sustained throughout the year, prices will increase by more than 13% annually.






The information in this website and the links has been prepared for general information purposes only by our research partners and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances.

Ronald Pratap

Principal Financial Planner at RP Wealth Management | Financial Planning l SMSF I Insurance l Property Advisory. Our purpose is to provide our clients with sound advice and direction to assist with their financial affairs and help them make the best choices in achieving what is important to them.

Latest Posts

How to get the most value from your tax return

How to get the most value from your tax return

June 21, 2022
property_crash_loan_debts_mortgage_interestrates_finances_rpwm

Are we heading for a property crash?

May 30, 2022
Does_COVID-19_vaccination_affect_your_life_insurance__rpwm

Does COVID-19 vaccination affect your life insurance?

May 30, 2022
What Clients Are Saying About Our Financial Planning Services
Great team, very helpful.Ronald always goes out of his way to assist with any questions I have and there is constant engagement, great reporting and a real sense of the team being there to support and help you. I must admit I was sceptical about seeing a financial advisor, I had worried I was going to meet with some slick salesperson interested in cashing in on my inexperience and trying to sell me a bunch of things I didn't really need. Ronald was the complete opposite to this, he has been open and honest and genuinely interested in our goals, we will not be changing, and we will be sticking with the team at RP Wealth Management.
Justin Read
Justin Read
00:02 30 Mar 22
Ron and team are very professional, patient and very transparent.Very happy to have found Ron and working on my needs.
Vinodh Kumar Ravinder
Vinodh Kumar Ravinder
17:52 24 Feb 21
Ronald is very informative and professional and I have no hesitation to recommend him highly.
Chris Bakalian
Chris Bakalian
04:30 02 Jun 20
Ron and the team are extremely professional and knowledgeable, complimented by exceptional customer service.
Michael Ferella
Michael Ferella
04:11 27 May 20
Ron was able assist my husband with all the necessary information from start to finish with his plan. We found Ron extremely easy to get along with and communication was outstanding. As a family we can high recommend Ron to all.
Chloe Farnell
Chloe Farnell
04:01 02 Apr 20
Ron has been amazing for me and truly took the time to understand what my real needs and wants were to custom tailor not only my super and retirement plans but the options to diverse my investing to meet short term goals.He’s very relatable and down to earth so the whole process is enjoyable. Looking forward to working together in the many years ahead.
Shannon McDonnell
Shannon McDonnell
00:29 20 Feb 20
Ron is honest, intelligent, trustworthy, and hardworking adviser. Always goes above and beyond to ensure he gets the best outcome for his clients. Highly recommended!
Petra Novakova
Petra Novakova
12:25 06 Feb 20
Ron is amazing!! He is so easy to talk to and explains things so you can understand everything. If we had any questions about anything he was always there to answer our questions. Definitely recommend him.
Jessica Tree
Jessica Tree
09:05 11 Oct 19
Ronald is a great person to deal with...explains everything very clearly and goes through all your options...looks out only for his client not any personal gain..I feel confidence that my wealth management and finances are handled correctly with his guidance
Jordan Mijalkov
Jordan Mijalkov
07:57 24 Sep 19
Insurance within super and the whole superannuation mindfield is made simple when you enage with people who know their stuff.I highly recommend Ronald, he is flexible, committed and focussed on helping you to understand and have confidence in this arena.
Sandra Bartlett
Sandra Bartlett
04:50 29 May 19
Ron and his team have a wealth of knowledge in the industry and have referred relatives and clients, whom have been satisfied with his service to ensure that they are adequately protected.
Daniel Caldwell
Daniel Caldwell
22:24 07 May 19
I have referred many clients and used Ronald's financial planning services personally and couldn't recommend him highly enough. Very professional and knowledgeable in the financial services industry. I would not hesitate for a second to recommend Ronald’s services to anybody within my network.
Bradley Durrant
Bradley Durrant
03:22 03 May 19
Have had a great experience, have felt all meetings and communication to be very informative and honest in areas I was uncertain about.
Josh Saumatua
Josh Saumatua
08:34 22 Jul 18
Very knowledgeable and informative. Happy to answer all questions and always responds to my calls/emails. Takes control which makes for a simple and seamless process.
D Saumatua
D Saumatua
12:24 20 Jul 18
Ronald is so easy to deal with and helps you every step of the way to make it so efficient and quick to fill out paperwok. He is very professional and makes it all happen so quickly. He always picks up the call or gets back to you, What else can you ask for. Great guy and service
Mibu Medispa
Mibu Medispa
08:08 16 Jul 18
Very professional and consistent in his work with truckloads of knowledge in his industry. He helped me with my life insurance and did a fantastic job from start to finish. Walking me through the entire process and always following me up. I would not hesitate for a second to recommend Ronald’s services to anyone. Great guy. Great professional. Great service.
Caterina Romeo
Caterina Romeo
01:07 18 Apr 18
I met Ronald in a professional capacity, and his willingness to share his insights and his enthusiasm for the work that he does clearly shines through. I'd highly recommend connecting with him if you're looking for an adviser who holds great integrity in the way they support their clients.
Shannyn Merlo
Shannyn Merlo
08:32 23 Feb 18
Great service and very helpful
Dragan Jelic
Dragan Jelic
01:25 27 Oct 17
Ronald is great communicator and very knowledgable with his financial advise. He helped my wife and I structure a better protection plan covering life insurance, trauma cover and income protection. Easy to discuss any questions we had and generally very helpful. I highly recommend talking with Ron!
James Newman
James Newman
03:38 25 Sep 17
Ronald is a really easy going guy to deal with. He will go above and beyond to ensure he finds out all the details and gets you the best cover for your circumstances. Ronald made the process of getting Trauma Insurance and Life Insurance very easy - much easier than I thought and it was surprisingly cheaper than I thought it would be too. I really recommend you see RP Wealth Management.
Hayley Pieplenbosch
Hayley Pieplenbosch
05:55 28 Jul 17
I needed general financial advice and he delivered with the lingo I easily understood. Friendly guy and always approachable. Would highly recommend him to anyone!
Gorgi Serovski
Gorgi Serovski
13:09 22 May 17
A hard working and diligent professional, Ronald certainly places his clients needs first in all situations. Keep up the good work!
Shaun Pereira
Shaun Pereira
00:14 19 May 17
My Wife and I have known Ron for many years. He has always put our needs first and has always given 110% with giving us the best advice,solutions and above all exceptional results with our super and investments! Highly recommend Ron to anyone in need of financial guidance."I found Ronald to be very knowledgeable about all aspect of finance and being very helpful in overseeing my finances and making sure that I will live comfortably for quite a few years to come. his friendly nature comes from deep down and his clients are treated like family. I will not be afraid of recommending Ronald to all my relatives and friends."Thanks mate. Really appreciate it.
Deniz Sertlioglu
Deniz Sertlioglu
03:09 03 Jan 17
We've Been Featured In
Industry Recognition

TAL Rising Star Financial Planning finalist 2016

RI Advice Excellence award Finalist 2014

One of the 50 Most Influential Advisers 2021

Subscribe To The RP Wealth Management Newsletter
You’ll receive the latest information about our business, services, new offerings and our marketing communications.
Book Your Consultation
Are you ready to secure your financial future today?
Get in touch with us to develop your strategic plan and achieve peace of mind.

© 2021 RP Wealth Management | Privacy Policy