Australia economy slows in Q4 as inflation squeezes consumers

FILE PHOTO: People are silhouetted against the Sydney Opera House at sunset in Australia

SYDNEY: Australia's economy grew at its weakest pace in a year last quarter as strength in trade was offset by rising interest rates and high inflation, and all the signs are a further slowdown lies ahead.

Indeed, without the sizeable contribution from trade, the economy would actually have contracted in the December quarter as rising prices eroded consumer purchasing power and led them to save less.