Australia consumer confidence falls to record low as inflation expectations hit new high

Australian consumer confidence has dropped to another record low, while inflation expectations have risen to a record high, adding to pressure on households and complicating the outlook for the Reserve Bank of Australia. The latest ANZ-Roy Morgan survey showed sentiment weakening further as consumers grew more pessimistic about their personal finances and the broader economy.

Cost-of-living pressures and higher interest rates continued to weigh on households, keeping confidence in negative territory. The survey also showed inflation expectations climbing sharply, a sign that consumers see price pressures staying elevated and that wage and spending behaviour could be affected.

The rise in expectations comes as energy prices have been pushed higher by conflict in the Middle East, adding to domestic inflation pressures. Despite the weak mood, the labour market remains relatively resilient, but subdued confidence could still weigh on household spending, a key driver of economic growth.

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Source: KLEA News