In August Australians expected inflation of 3.2% annually over the next two years, down 0.2% points on July and equalling the record low in June. Inflation Expectations are now down a significant 0.7% points on a year ago.
The big economic impact in August was the imposition of a hard lockdown in Melbourne including a night-time curfew, stringent limits on travel and the compulsory wearing of masks. There were also repeated low-level outbreaks of COVID-19 in both New South Wales and Queensland throughout the month.
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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.
