Consumer confidence: inflation expectations rise

•Consumer confidence was largely unchanged last week with a 0.3pts fall to 82.8pts. The four-week moving average rose 0.5pts to 82.5pts.

•‘Weekly inflation expectations’ rose 0.1ppt to a six-week high of 5.2%, while the four-week moving average was also up 0.1ppt to5.0%.

•‘Current financial conditions’ softened 0.8pts and ‘future financial conditions’ declined 1.9pts.

•‘Short term economic confidence’ (about the economic outlook over the next 12 months) gained 1.9pts. ‘Medium term economic confidence’ (about the economic outlook over the next five years) fell 0.4pts.

•The ‘time to buy a major household item’ subindex moderated by 0.1pts.

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ANZ Senior Economist, Catherine Birch said: “ANZ-Roy Morgan Australian Consumer Confidence declined a touch last week and has remained within the 80-85 range for 15 consecutive weeks.

Inflation expectations rose to 5.2% going into the Easter long weekend, likely reflecting higher petrol prices. But households may have also felt more keenly the current bout of high chocolate inflation, driven by surging global cocoa prices. Confidence among those paying off their homes rose 1.2pts to 80pts, was largely steady at 81.7pts for renters, and fell 2.1pts to 86.0pts for outright homeowners.”

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