Inflation expectations down

Consumer confidence rose 3.5 points last week to 67.8 points. The four-week moving average lifted 2.3 points to 64.7 points.

‘Weekly inflation expectations’ fell 0.5 percentage points to 6.6 per cent, while the four-week moving average eased 0.2 percentage points to 6.9 per cent.

‘Current financial conditions’ (over the last year) increased 4.6 points, while ‘future financial conditions’ (next 12 months) ticked up 0.1 points.

‘Short-term economic confidence’ (next 12 months) was up 4.7 points, and ‘medium-term economic confidence’ (next five years) rose 5.4 points.

The ‘time to buy a major household item’ subindex increased 2.4 points.

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"ANZ-Roy Morgan Australian Consumer Confidence rose 3.5 points to 67.8 points last week," ANZ Economist, Sophia Angala said.

"The series is at its highest level since mid-March but remains among the lowest readings since the series began in 1973. While all subindices improved last week, the lift was led by improving confidence in economic conditions.

"Weekly inflation expectations fell to 6.6 per cent last week, its lowest rate since early March, following the escalation of conflict in the Middle East. This comes ahead of the Q1 Consumer Price Index release (due Wednesday 29 April).

"We forecast headline inflation to have risen 1.4 per cent quarter on quarter, partly reflecting the impact of higher fuel prices in March. We continue to expect the RBA to increase the cash rate by 25 basis points at its May meeting."

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