Australian households anticipate a further rise in inflation in the near term, following the release of September quarter inflation data that exceeded economists’ and market expectations. The latest ANZ-Roy Morgan poll of consumers indicates that inflation expectations have increased by 0.4 percentage points, reaching 5.2 per cent last week. This reflects a growing concern among consumers about the rising cost of living. ANZ is one of Australia’s largest banks, providing a range of financial services to individuals and businesses. Roy Morgan is a well-known market research company.
Consumer confidence, which had shown signs of recovery since peaking in 2022, experienced a setback last week, declining by 1.3 percentage points. This downturn suggests that the renewed concerns about inflation are beginning to impact overall consumer sentiment. The survey results highlight the delicate balance between managing inflation and maintaining consumer optimism.
Furthermore, ANZ’s index measuring the sentiment towards purchasing major household items also decreased, falling by 1.4 per cent. This decline may indicate that households are becoming more cautious about discretionary spending in response to rising inflation expectations. The combined effect of these factors could potentially influence broader economic activity in the coming months.
The Reserve Bank of Australia will be closely monitoring these indicators as it considers future monetary policy decisions. The central bank aims to steer inflation back within its target band, without triggering a significant economic slowdown. The latest survey data underscores the challenges it faces in achieving this delicate balance.
