Across the country, Australians are feeling the (further) pinch of rising prices, with petrol, groceries and rents all creeping up to their highest points this year.

In today’s newsletter, we’re going to take a closer look at inflation - keep an eye on the release of new data from the Australian Bureau of Statistics, set to be announced this morning, which may make this explainer even more important to the day’s news.

Prices increased by 3.5% in the 12 months to July 2026, according to new data from the Australian Bureau of Statistics (ABS). This is less than the previous 3.8% inflation rate, and represents the fourth consecutive month where the inflation rate has fallen.

Remember: a falling inflation rate does not mean that prices are falling – it means they are still increasing, but at a slower rate.

Inflation measures the change in the prices of goods and services over time. The most common measure of inflation is the Consumer Price Index (CPI), which tracks the rate of price changes and is typically expressed as an annual rate. This is often called ‘headline inflation’.

Inflation and wages are often compared because cost-of-living pressures worsen when inflation rises faster than wages.

A couple of weeks ago, the ABS announced that wages rose by 3.2% over the 12 months to the June quarter 2026. This is important because it tells us that real wages (wages after inflation is taken into account) have fallen by roughly 0.3% in the past year. That essentially means the value of the average wage is going backwards by 0.3%.

The ‘trimmed mean’ is an alternative measure of inflation that ignores the most extreme positive and negative price movements (e.g. a sudden increase in the price of petrol).

For this reason, the Reserve Bank of Australia (RBA) prefers this measure as it ignores any short-term noise. The trimmed mean was 3.6% in the 12 months to July 2026, which is higher than the RBA’s target range of 2-3%.

The news comes after the RBA decided to keep the cash rate on hold at 4.35% at its last meeting. The cash rate is the interest rate that banks charge each other for short-term loans, and is the tool used by the RBA to get inflation under control.

The latest data tells us that both headline inflation and the trimmed mean are higher than the RBA’s target range. While an unchanged cash rate at the next RBA meeting is still widely expected, the odds of an increased cash rate have risen over the past week.

The next cash rate decision is on the 29th of September. The next inflation release is on the 30th of September.

Reporting by Adam Wan.

Fast-fashion company Shein has officially become a public company after listing on Hong Kong’s stock exchange on Tuesday.

On its first day on the stock market, its share price fell by as much as 10%.

Right before its listing, Shein was valued at $US26.5 billion ($AU37.0 billion). This is a big drop from its peak valuation of nearly $US100 billion ($AU139.5 billion) in 2022.

Shein is a fast-fashion retailer known for its cheap prices.

It was started in 2012 and has its supply chain “anchored” in China. Shein ships worldwide, but doesn’t actually sell its products in China.

Its popularity skyrocketed in 2020 when the pandemic pushed shoppers online and “Shein hauls” went viral on TikTok.

Despite its popularity, Shein has faced years of controversy. These include allegations of copyright infringement, poor product quality, and violations of labour laws and human rights.

Shein announced its public listing last month, after Chinese regulators approved it in July.

When a company first goes public, it invites investors to buy shares in the business. This is called an Initial Public Offering (IPO). A person who buys a share becomes a shareholder in that company. Once a company is listed, anyone can buy or sell its shares.

Why did it go public? Experts think it has something to do with Shein agreeing that, from March 2026, it would pay some of its investors extra money for as long as it stayed private.

This is the third time Shein has tried to go public – it previously failed to list in New York in 2023 and London in 2025.

U.S. politicians demanded Shein prove its clothes weren’t made with forced labour. Shein denied that they were, but never provided the proof.

Reporting suggests British regulators were ready to approve the London listing, but Chinese regulators wouldn’t accept a filing that flagged forced labour in Shein’s supply chain.

Right before it went public in Hong Kong, the IPO valued Shein at $US26.5 billion ($AU37.0 billion), which is a quarter of its peak valuation of $US100 billion ($AU139.5 billion) in 2022.

The drop-off in valuation is partly due to U.S. President Donald Trump’s tariffs – taxes on imported goods that make Shein’s products more expensive for customers.

Shein had also previously relied on a rule known as “de minimis”, which allowed cheap goods to enter the U.S. without being taxed. This rule was scrapped in May 2025. Shein’s products now face import taxes of up to 87.5%.

Shein also now faces intense competition from companies such as Temu, which are eating into its market share.

The IPO means Shein has raised $US1.7 billion ($AU2.4 billion). With that money, it says it plans to:

On its first day of trading, Shein’s shares fell by as much as 10%.

Australian investors can now buy and sell Shein’s shares on Hong Kong’s stock market.

TDA reached out to Shein for a comment on whether it will increase their presence in Australia. Shein has not yet replied.

Reporting by Adam Wan.

Two heritage brands just dropped a collab we didn't see coming - Ford x Brixton.

The limited-edition collection brings Ford's Built Tough legacy into Brixton's signature streetwear - think tees, caps and jackets in that unmistakable Ford Blue, plus bold racing stripes straight from decades of American automotive heritage. Workshop-grade quality with weekend-ready style.

Happy 50th birthday birthweek to the first ever index fund for individual investors!

(An index fund is a type of investment that follows a specific group of companies – for example tech companies or the top 200 companies in Australia.)

Vanguard 500, an index fund that tracks the biggest 500 companies in the U.S, was launched on 31 August 1976 by legendary investor John Bogle.

Vanguard 500 was initially met with scepticism, but how did it turn out? Well, if you invested $10,000 in Vanguard 500 when it launched, you’d have $2.4 million now. If only I was born earlier… (and had $10,000).*

*Past returns don’t guarantee future returns.

Reporting by Adam Wan.