In May, before the Federal Government conceded in June that Australia had entered its first recession for three decades, Australians expected inflation of 3.3% annually over the next two years. This was down 0.3% points on April and a significant 0.7% points on the pre-COVID period of February 2020.
Analysing the different Inflation Expectations by home ownership status shows declines across the board over the last few months. The sharpest decreases in Inflation Expectations were for renters, down 1.0% point from February to 3.6% in May.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
