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Inflation Expectations Tick Up, Struggling To Hold Below 5.5%

AUSTRALIA DATA

The Melbourne Institute’s consumer inflation expectations series for January rose to 5.6% from 5.2% last month, in line with higher January petrol prices. In November it had fallen 0.8pp. While they are off of their June 2022 peak of 6.7%, they remain elevated and have been zigzagging for the last 5 months and struggling to sustain a move below 5%, which is not good news for the short-term inflation outlook and could be concerning for the RBA.


Australia Headline CPI y/y% vs MI consumer inflation expectations

Source: MNI - Market News/ABS/Refinitiv/MI

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