Adding this in related to the earlier data: Australia Consumer Confidence weekly index 108.4 (prior 106.8)
In the weekly sentiment data is also an inflation expectations data point, ANZ made a specific point on it earlier (see the linked post above).
Interestingly, on Monday there was also this:
While we wait for the RBA announcement:
- due at 0330 GMT on Tuesday 02 November 2021
ANZ note:
- "Higher inflation expectations signal that wages are accelerating at a faster pace than what the RBA thought,"
- "But the important piece of the puzzle is that while wages growth is picking up, it's picking up to a level that's well short of where it needs to be."
(Bolding is mine - the Reserve Bank of Australia want to see faster wage growth to spur inflation on. As I noted earlier, one high CPI reading is not going to prompt the RBA to do an about-face on policy today.)
Further from ANZ:
- "'Weekly inflation expectations' is still close to its recent high, dropping just 0.1ppt to 4.9 per cent."
- "The sharp quarterly rise in fuel costs of 7.1 per cent in Australia's Q3 CPI likely had a significant impact on householders' inflationary outlook during these past few months."
- "The close relationship between ABS's Wage Price Index and inflation expectations means it is a key indicator. Critically, however, inflation expectations point to wages growth that is still below the level the RBA has said is needed to ensure inflation will sustainably be in the target band."
