The weekly ANZ-Roy Morgan consumer confidence index has been released, which reveals that confidence rebounded 2.5% last week on the back of a sharp 30 cent decline in petrol prices and a reduction in inflationary expectations:
According to ANZ head of Australian economics, David Plank:
Inflation expectations (IE) dropped 0.6ppt last week to 5.8%, as petrol prices dropped sharply. We think this explains much of the lift in sentiment, though the focus on relieving cost of living pressures in the Federal Budget may also have played a part. The fall in petrol prices is likely due to lagged effects of the drop in crude prices since 8 March which have declined by nearly 20% since then.
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