Consumer Confidence inflation expectations jump

Inflation is dominating headlines globally. So the 0.3 per cent jump in ‘weekly inflation expectations’ to 5.0 per cent is notable. This is its highest value since December 2014. Its four-week moving average was steady at 4.8 per cent.

Consumer confidence fell 0.2 per cent. With Melbourne out of lockdown, confidence improved modestly in Victoria, but the outlook across the other states was mixed. Confidence dropped in NSW and WA, while it was up in Queensland and SA.

The subindices registered mixed results. ‘Current financial conditions’ softened 0.2 per cent and ‘future financial conditions’ fell 3.4 per cent.

‘Current economic conditions’ dropped slightly by 0.3 per cent, while ‘future economic conditions’ gained 1.3 per cent.

‘Time to buy a major household item’ improved 2.4 per cent.

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"The notable development this week is a 0.3ppt rise in ‘weekly inflation expectations’ to 5.0 per cent. This is the subindex’s highest value since December 2014." ANZ Head of Australian Economics, David Plank said.

"The rise in average petrol prices of more than 10 per cent nationally in the past two weeks likely had an impact on household perceptions of price increases."

"Consumer confidence softened 0.2 per cent nationally even though Melbourne opened up after more than two months in lockdown. Confidence was up in the city by 1.2 per cent and also across Victoria (1.5 per cent). Sentiment remained positive in Queensland (0.7 per cent) and South Australia (10.4 per cent) but the overall outlook was dampened due to a fall in confidence in New South Wales (-1.8 per cent) and Western Australia (-5.9 per cent).

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