Quick data recap

Positively, domestic inflation remains very low (+2.8% y/y in April vs +2.7% y/y in March), supported by lower fuel prices (see Outlook for further analysis). Less positively, March’s retail sales disappointed, rising just +1.5% y/y (vs. +4.1% in February), as the spending stimulus from two-pot withdrawals fades. The continued retail slowdown underscores the fact that stronger domestic growth is unlikely without structural reforms to boost investment.