Carrington Clarke

My pleasure.

Let's start with this result from Woolworths because it's set markets alight and it seems to be some of the first hard evidence we have about how widespread this inflationary pressure from this oil supply crisis is.

is actually.

On one hand, this is a pretty stellar result from Woolworths.

I mean, it's seen a 4.5% increase in sales to $18 billion across its group, which includes its supermarket divisions, but also its Big W and other divisions.

But it's the forward guidance that is the reason we've seen the share price fall, isn't it?

It's that they're saying...

that they don't expect to hit the same profit that they might have hit previously because they're seeing these inflationary pressures build within the economy more broadly.

They're facing higher costs and people are less likely to spend money.

Yeah, I think what was fascinating to me is that we've just had the inflation data come through.

The inflation data is obviously super important for the Reserve Bank when it's setting interest rates.

It is comprehensive data about how...

price pressures are playing out in the economy.

The problem is it's backwards looking.

It captures things that have already happened.

Yeah, I think this is the strength of – and the reason why it's so beneficial to listen to these updates from particularly the two supermarket giants.

This is real – almost real-time data.

And Amanda Barwell pointed out that we're already seeing this flow through to –

The fresh items, you've got your fresh fruit, your fresh vegetables, you've got your milk, your bread, because they are first very exposed to what's happening with the price of diesel.

They're also very exposed to what's happening with the price of fertilizer.