Retail prices may be the first to contribute to lower inflation. Recent data from the ABS shows the impact that sea freight costs had on certain retail categories through COVID-19. The chart below shows freight costs as a share of the total product cost for imported product categories. Furniture freight went from 6% of the total cost in 2019 to 19% in February 2022.  It was a similar story for appliances.  The unwind of retail inflation is likely to vary greatly by category and is happening already in highly imported categories. In our view, these retail segments are likely to report the weakest sales trends as inflation unwinds quickly. For more click here Report on retail outlook