‘Weekly inflation expectations’ rose 0.1ppt to 5.1 per cent last week, its highest in more than seven years (December 2014).
It’s four-week moving average remained at 4.9 per cent.
Consumer confidence decreased 1.4 per cent, with weekly losses in four of its five subindices. Confidence dropped across all the states except for Victoria.
‘Current financial conditions’ was virtually unchanged with an increase of 0.2 per cent. ‘Future financial conditions’ softened 0.7 per cent.
‘Current economic conditions’ declined 2.5 per cent after a 9.3 per cent increase the week before. ‘Future economic conditions’ were down 1.1 per cent.
‘Time to buy a major household item’ decreased 2.6 per cent.
“Inflation expectations rose 0.1ppt to 5.1 per cent last week, its highest since December 2014. With petrol prices at record highs during the past few weeks the lift in inflation expectations is not surprising.” ANZ Head of Australian Economics, David Plank said.
“Consumer confidence dropped 1.4 per cent despite the easing of COVID restrictions in NSW and the imminent reopening of international borders to tourists.”
“The expectations of higher inflation might have had a dampening effect on overall sentiment. Confidence dropped by 5.6 per cent in NSW, 0.7 per cent in QLD, 0.8 per cent in SA and 2.8 per cent in WA, while it increased in Victoria by 2.9 per cent.”
