Nov 16, 2021
November 23, 2021
Consumer Confidence inflation expectations drop
‘Weekly inflation expectations’ decreased 0.4ppt to 4.6 per cent and the four- week moving average dropped 0.1ppt to 4.9 per cent.
Consumer confidence increased by 1.3 per cent last week. Among the major states, confidence rose in Victoria, Queensland and Western Australia, while it dropped in New South Wales and South Australia.
The confidence subindices registered mixed results. ‘Current financial conditions’ gained 1.6 per cent, while ‘future financial conditions’ were unchanged.
‘Current economic conditions’ fell 1.7 per cent, while ‘future economic conditions’ jumped 4.9 per cent.
‘Time to buy a major household item’ rose 2.1 per cent.
"Consumer confidence rose 1.3 per cent last week as the nation inched closer to normalcy, with Victoria easing all COVID restrictions for the fully vaccinated. Close to 85 per cent of those aged 16 and above across Australia had been fully vaccinated by last week. ANZ Head of Australian Economics, David Plank said.
"Confidence increased 4.9 per cent in Victoria, 2.0 per cent in Western Australia and 1.7 per cent in Queensland, while it dropped -1.1 per cent in New South Wales and -0.5 per cent in South Australia."
"Inflation expectations decreased 0.4ppt to 4.6 per cent last week despite petrol prices hovering around record highs. This indicator can be volatile from week-to-week, so we are cautious about overreacting to one survey reading. If the fall in inflation expectations is sustained, however, it may be an important signal for wages growth."
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