Australia Inflation Expectations Highest in 5 Months

2024-04-11 01:09 By Farida Husna 1 min. read

Consumer inflation expectations in Australia were up to 4.6% in April 2024 from 4.3% in March, pointing to the highest print since last November amid elevated cost pressure, notably from prices of services, and uncertain domestic economic outlook.

The Reserve Bank's governor Michele Bullock recently said that the board needed “greater confidence that inflation will return to the target band in a reasonable timeframe and will stay there” before it could cut cash rates.

Headline inflation in the country stood at 4.1% in Q4 of 2023, down sharply from 5.4% in Q3 and over a 30-year peak of 7.8% in Q4 of 2022 following a total of 425bps rate hike over the past two years.

Monthly, the annual inflation was at 3.4% in February, staying at its lowest in two years, driven by moderating goods inflation.

Meantime, the economy grew 0.2% qoq in Q4, the softest pace in five quarters, reflecting a sluggish economic recovery in China and the implications of the conflicts in Ukraine and the Middle East.



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