Consumer confidence: Three-year high inflation expectations

Consumer confidence fell 3.7 points last week to 73.4 points. The four-week moving average eased 0.9 points to 77.0 points.

‘Weekly inflation expectations’ lifted 0.8 percentage point to 6.1 per cent, while the four-week moving average rose 0.3 percentage point to 5.5 per cent.

‘Current financial conditions’ (over the last year) declined 1.2 points, while ‘future financial conditions’ (next 12 months) decreased 6.6 points.

‘Short-term economic confidence’ (next 12 months) fell 6.4 points, and ‘medium-term economic confidence’ (next five years) rose 0.4 points.

The ‘time to buy a major household item’ subindex declined 4.5 points.

"Consumer Confidence declined 3.7 points last week, taking the series to its weakest level since July 2023," ANZ Economist, Madeline Dunk said.

"Most subindices declined, with the sharpest fall seen in households’ confidence about their financial conditions over the coming year. That subindex remains at its lowest level on record,"

"Rising geopolitical uncertainty is likely to have played a role. Since the conflict in the Middle East escalated last week, WTI oil futures are up roughly 30 per cent. And inflation expectations recorded their largest weekly rise since we began measuring the series in 2010. This takes inflation expectations to its highest level since November 2022. RBA Governor Bullock noted last week that the Board will be watching inflation expectations closely to ensure they remain anchored."

Download PDF 

For media enquiries contact:

Siobhan Jordan

Senior External Communications Manager

Tel: +61 403 988 326