Inflation expectations still dead in the water

Tuesday 16 February 2021

Roy Morgan Research has released its inflation expectations survey for January, which reveals that Australians expected inflation of only 3.6% over the next two years, unchanged on December:

Inflation expectations remained 0.3% below the same time last year (January 2020).

Inflation Expectations are now heavily correlated with age. Older Australians born before 1946 – the so-called ‘Pre-Boomers’ – now have the highest Inflation Expectations at 3.8%, and with the biggest increase of 0.7% points since the mid-2020 record lows.

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About the author

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.