Sticky inflation restricts 1H gains for Aussie staple consumer firms
** Australian staple consumer stocks .AXSJ on track to gain a meagre 1% in 1H24, underperforming the broader benchmark index .AXJO
** Top Aussie supermarket chain Woolworths Group WOW.AX has lost 9.6% in 1H24, eyeing its worst half-year since 2016
** Sticky inflation across the spectrum has meant consumers are cutting down on spending
** Westpac senior economist says pessimism prevails among consumers and high inflation has ignited fears that the central bank might hike interest rates
** "Consumer spending environment remains muted, having risen by just 0.1% per month on average since January," CBA said
** No. 2 grocer Coles COL.AX has risen 6.7% YTD
** UBS says "outlook for COL is improving, with COL sales gth forecast to exceed WOW in CY24E and EBIT margins to recover/expand"
** Discretionary consumer stocks .AXDJ set to end 1H more than 8% higher, with majority of gains coming from retail conglomerate Wesfarmers WES.AX
** Jefferies had earlier warned the Australian retail segment about local media, political and regulatory scrutiny
Consumer stocks Australia consumer stocks https://reut.rs/3XFYesc
Reporting by Sameer Manekar & Rajasik Mukherjee in Bengaluru
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