As part of the weekly consumer sentiment survey ANZ ask about inflation expectations.
ANZ highlight expectations are on the move:
The Reserve Bank of Australia have told us time and again they do not expect a cash rate move until 2024 at the earliest. Lack of wage pressure to drive inflation is on the RBA's side. We'll see. The RBA has admitted its mistake in the prior half-decade or so of relying on their forecasts for inflation (higher ... forecasts which proved incorrect) to guide monetary policy, and in past months switched instead now to actual inflation data to guide policy rather than their, flawed, forecasts. A question ahead is will the RBA;s focus on (slow) wage growth blind them to actual higher inflation data ... thus repeating their mistake just in another format. Again, we'll see.
