In November Australians expected inflation of 3.4% annually over the next two years, down 0.1% points from October but still up 0.2% points on the record low in August. Inflation Expectations are still a significant 0.6% points below the pre-pandemic month of March 2020.
Over the last few months Inflation Expectations have increased from their record low of 3.2% and when assessed by home ownership status the drive higher has come from Australian home owners who now expect inflation of 3.4% annually over the next two years – up 0.3% points since August.
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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.
