Aussie inflation expectations ease on lower petrol prices

Wednesday 14 September 2022

According to Roy Morgan Research, Aussie inflation expectations eased in August from July’s record high on the back of falling petrol prices:

Nevertheless, inflation Expectations in August were a large 1.3% points higher than a year ago, and 2.4% points above the record low of 3.2% in August 2020.

The relief will be short-lived, however, with the temporary cut in the fuel excise scheduled to expire at the end of the month. This will see petrol prices rise by over 25 cents a litre (including the GST), which will add around 0.25% to CPI:

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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.