Australia's economy is running into more headwinds with recession-busting revenue from the commodities boom starting to fade.The warning comes as the federal budget soars towards a $20 billion surplus taking it back into the black for the first time in 15 years. But that surplus could be shortlived with tax revenue from commodities set to fall from record highs over the next year.

FEATURED: Chris Richardson, economist

The Reserve Bank's decision on whether to leave interest rates on hold next Tuesday has been complicated by better than expected retail sales data. So could evidence that consumers remain resilient despite 12 interest rate since May last year tempt the RBA to hike rates once again?

Bets are rising for another interest rate rise next week after better-than-expected retail sales figures out yesterday.

The outcome complicates the Reserve Bank's decision on signs that 12 rate rises since May last year are yet to work their way through the economy and dampen inflation.

Economists are divided on whether a sharp fall in monthly inflation could give the Reserve Bank an opportunity to leave interest rates steady at next week's meeting. Research of 570,000 National Australia Bank customers found that while borrowers are resilient, they're saving an average $286 a month by cutting back on restaurants, coffees, lunches, movies and food delivery services.

Featured: Jim Chalmers, Federal Treasurer

Reserve Bank rates pause on cards if inflation slows by Peter Ryan

The latest monthly consumer price indicator shows inflation fell sharply to 5.6 per cent over the 12 months to May, down from 6.8 per cent in April. A large fall in the cost of fuel, reversing a sharp rise in April, was the biggest downwards contributor to prices. Cooling inflation could allow the Reserve Bank to leave interest rates steady after 12 hikes since May last year.

After more than a year of surging inflation, could the turning point be finally in sight? The latest inflation data will influence whether the Reserve Bank holds off on another interest rate rise.

Reporter: Peter Ryan, Senior business correspondent

It's taken a while despite 12 interest rate rises since May last year, but investment bank UBS there are growing signs that Australian consumers are close to their breaking point.

But will that stop the Reserve Bank for delivering even more rate rises?

Also, NSW Liberal senator Andrew Bragg warns the expected axing of RBA governor Philip Lowe during a hiking cycle could damage the central bank's independence.

PWC Australia acting chief executive Kristin Stubbins has fronted a NSW parliamentary committee to apologise for the tax leak scandal flagging "severe consequences" for those involved. Ms Stubbins said the sale of PWC's government business was critical in rebuilding trust and confidence while protected up to 2000 staff. Analysis from ABC's Peter Ryan.

Featured: Kristin Stubbins, PWC Australia acting chief executive; Mark Buttigieg, Labor committee member

The future of the consulting firm PWC remains under cloud with a new chief executive Kevin Burrowes being parachuted in from Singapore to rebuild the damaged business.

But is that going to help with the survival of PWC's broader business even though its government consulting arm is being sold off to private equity firm Allegro - for just one dollar.