Roy Morgan’s inflation expectations survey for June has been released which reports that Australians expected inflation of 4% over the next two years, up 0.3% and the highest Inflation Expectations since the pandemic began. Inflation Expectations are also now 0.8% higher than they were a year ago – the biggest year-over-year increase since the series began in 2010:
Inflation Expectations are still 0.7% points below their long-term average of 4.7% but are now 0.5% points higher than the 2020 monthly average of 3.5%…
Australians in the highest ‘AB Quintile’ have the lowest Inflation Expectations at only 3.4% in June, representing an increase of 1.3% points on a year ago – a larger increase than any other socio-economic quintile.
Inflation Expectations are progressively higher for each subsequent socio-economic quintile including 3.7% (up 0.5% points) for the ‘C Quintile’, 3.9% (up 0.8% points) for the ‘D Quintile’, 4.4% (up 1.1% points) for the ‘E Quintile’ and are highest of all for the ‘FG Quintile’ at 4.8% (up 0.6% points)…
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.
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