Australian businesses reported a reacceleration in inflation pressures in May despite the backdrop of a lifeless economy, the Wall Street Journal reported. The results of the latest monthly survey of firms by the National Australia Bank paint the worst of worlds for the Reserve Bank of Australia, which may need to raise interest rates further before it can claim victory over inflation. Business confidence fell 4 index points to minus 3 index points in May from April, while NAB’s business conditions index fell 1 point to 6 index points over the same period.

For decades, Sydney has been one of the world’s top dining destinations. But now the city is in a critical culinary moment as some of its most high-profile restaurants shutter, many of them victims of the ongoing cost-of-living crisis and the lingering effects of the pandemic, Bloomberg News reported. The notable Redbird Chinese has already shuttered, along with sister venue Tequila Daisy. Last month, celebrity chef Kylie Kwong announced she’ll shut her beloved eatery Lucky Kwong and retire. The acclaimed restaurant Tetsuya’s, which opened 35 years ago, will close its doors in July.

Activity in Australia’s manufacturing sectors could be entering a recovery phase, with firms reporting ongoing demand for labor, with cost pressures reaching their highest level for years, the Wall Street Journal reported. The headline seasonally adjusted Judo Bank Australia manufacturing purchasing managers index rose to 49.7 in May, up from 49.6 in April. A reading above 50 indicates an expansion in manufacturing activity, while a reading below that indicates a contraction.

Australian retail sales remained weak in April, highlighting the plight of consumers in the face of elevated interest rates and rising costs, while signaling a sluggish economy for some time yet, the Wall Street Journal reported. Retail turnover rose 0.1% in April, the Australian Bureau of Statistics said Tuesday. Economists had expected a rise of 0.3% for the month. The weak result follows a 0.4% fall in March, and a 0.2% rise in February.

A major Aussie fashion brand that made dresses worn by superstars such as Taylor Swift and Dua Lipa has entered administration. The Australian franchise of clothing and apparel brand Dion Lee has become insolvent after a partnership deal collapsed, the Daily Mail reported. Antony Resnick, a liquidator from insolvency firm dVT Group was appointed as the administrator for all Australian Dion Lee stores on Thursday. dVT Group is also in the process of considering investors who may be interested in providing financial capital for the venture.

The Reserve Bank of Australia has warned that risks around the inflation outlook have risen, while uncertainty around the economy’s trajectory more broadly remains highly elevated, the Wall Street Journal reported. Minutes of the central bank’s May 6 to May 7 policy meeting showed that while it said there were increased risks that inflation will stay higher for longer than expected, the policy-setting board decided to keep interest rates on hold to avoid “excessive fine-tuning” of policy settings.

Unemployment in Australia jumped in April as more people searched for work, a rise that is likely to reduce pressure on the Reserve Bank of Australia to raise interest rates further, the Wall Street Journal reported. The unemployment rate rose to 4.1% in April from 3.9% in March, the Australian Bureau of Statistics said Thursday. Economists had expected the jobless rate to remain steady at 3.9%. The increase in unemployment came despite the economy adding 38,500 new jobs over the month. That wasn’t enough to account for a rise of 68,800 in the number of people seeking employment.

The Reserve Bank of Australia left interest rates unchanged Tuesday, and stuck with the message that it isn’t ruling anything out as it seeks to bring inflation under control, the Wall Street Journal reported. The RBA held the official cash rate at 4.35%, where it has remained since November. The outcome was widely anticipated by economists. “The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out,” the RBA said at the end of a two-day policy meeting.

Australian budget airline Bonza has canceled all flights through May 14 as lessors seek to seize its planes, Bloomberg News reported. The embattled carrier grounded its fleet on April 29 after the lessors issued termination notices. Hall Chadwick, which has been appointed as administrators to the airline, said Tuesday it has been in discussions with the lessors to see whether the grounded planes could become operational in the short term, but to no avail.

Australia plans to wipe out about A$3 billion ($2 billion) from student loans, cutting the debt of more than three million people, as the country continues to grapple with inflation and cost-of-living pressures, Bloomberg News reported. The center-left Albanese government announced the measure in its monthly budget on Sunday in hopes that it would ease economic pressure on workers and students, said Minister for Education Jason Clare in a statement.