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Inflation Expectations Lower, More Report Wage Increase

AUSTRALIA DATA
  • MI consumer inflation expectations fell 0.5pp to 5.4% in September (30% trimmed mean), as signalled by the fall in Petrol Prices . Total pay expectations were pessimistic at 1.1% growth over the next 12 months but 44.8% reported a wage increase (34.1% September 2021).
  • The Melbourne Institute noted that this was the third consecutive fall in inflation expectations suggesting that consumers feel that higher rates will rein in inflation.
Inflation expectations vs petrol prices

Source: MNI - Market News, Melbourne Institute, Australian Institute of Petroleum

CPI inflation vs inflation expectations (quarter average)

Source: MNI - Market News, Refintiv, Melbourne Institute

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