VoiceOver users please use the tab key when navigating expanded menus

Consumer confidence: inflation expectations dip

Consumer confidence fell 1.9pts last week. The four-week moving average was up 0.2pts.


'Weekly inflation expectations’ fell 0.1ppt to 5.1%, and the four-week moving average was also down from 5.2% to 5.1%.


‘Current financial conditions’ fell 4.4pts, while ‘future financial conditions’ rose slightly by 0.1pts.


‘Short term economic confidence’ (about the economic outlook over the next 12 months) was up a touch by 0.5pts.


‘Medium term economic confidence’ (about the economic outlook over the next five years) decreased 2.7pts, which is its third straight weekly decline.


The ‘time to buy a major household item’ subindex declined 3.0pts.

ANZ Senior Economist, Adelaide Timbrell said: “ANZ-Roy Morgan Australian Consumer Confidence softened last week but the four-week moving average rose to its highest level since early February 2023. The four-week average of inflation expectations was at its equal-lowest since March 2022, ahead of quarterly CPI data due out this week. We expect headline inflation to come in at 4.3% y/y to Q4 2023, below the RBA’s forecast of 4.5%.


"A rate hold in February would be supported by this result and would buoy confidence, particularly among indebted homeowners. Over the last month, confidence among all housing cohorts improved.”


Download report


Related Articles