Aussie inflation expectations have rocketed ahead of tomorrow’s March quarter CPI release by the Australian Bureau of Statistics (ABS).
According to Roy Morgan, inflation expectations over the next two years soared by 0.7% to 5.8% in March to its highest level in almost a decade (September 2012):
The increase in March was the biggest monthly jump in the index since Inflation Expectations increased by a record 0.8% points in January 2011 to a record high of 6.6% during the middle of the then ‘Mining Boom’. Inflation Expectations are now 1.1% points above the long-term average of 4.7% and a large 2% points higher than a year ago in March 2021 (3.8%).
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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.
