In June Australians expected inflation of 3.2% annually over the next two years. This result signified a new record low for the index – down 0.1% points on May and a significant 0.8% points on the pre-COVID period of February 2020.
Inflation Expectations have declined around the nation, however the magnitude of the drop has been far larger in some places than others – notably Melbourne where Inflation Expectations have dropped 0.9% points since February to only 2.8% in June.
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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.
