Inflation expectations highest in 12 years

Roy Morgan’s Australian inflation expectations index hit its highest level in nearly 12 years in November in response to soaring petrol prices following the federal government’s reinstating of the full fuel excise in late September.

Inflation expectations rose to 6.5% annually over the next two years, up 0.9% points from October:

Inflation Expectations were 1.6% points higher than a year ago in November 2021, more than double the record low of 3.2% reached just over two years ago in August 2020, and the highest since January 2011.