Australian Consumer Confidence Index: Inflation Expectations Fall to 30-Month Low
Key Findings
- Weekly inflation expectations down 0.4 percentage points to 47%.
- Four-week moving average decreases by 0.1 percentage points to 50%.
- Inflation expectations remain below levels recorded at this time last year.
Details
The ANZ-Roy Morgan Australian Consumer Confidence Index survey measures inflation expectations among consumers. This week's survey results show a drop in inflation expectations to a 30-month low of 47%.
The decline in expectations is reflected in both the weekly and four-week moving average figures. The weekly inflation expectations dropped by 0.4 percentage points to 47%, while the four-week moving average fell by 0.1 percentage points to 50%.
Despite the slight uptick in the four-week moving average, inflation expectations remain below their levels observed at this time last year.
Significance
Inflation expectations can influence price- and wage-setting behavior. Lower inflation expectations can help to reduce inflationary pressures in the economy.
The Reserve Bank of Australia (RBA) closely monitors inflation expectations as they provide insights into how consumers perceive future inflation.
Comments