Consumer confidence fell to lowest since mid-June ahead of inflation data: ANZ-Roy Morgan
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The news: Consumer confidence fell 4.4 points to 71.2 last week, dropping below the four-week moving average which eased to 74.2 points, according to the latest ANZ-Roy Morgan data.
The context: ANZ economist Sophia Angala stated that the latest figures mark the lowest confidence level since mid-June, with all subindices declining, driven by the recent Middle East conflict escalation alongside a gradual easing in the labour market, which weighed on confidence.
The weekly inflation expectations subindex rose to 5.9%, its highest level since mid June, ahead of the inflation data released on Wednesday.
ANZ projects underlying inflation to rise 3.7% year on year, slightly below the RBA’s expectations for a 3.8% rise, adding that lower-than-expected inflation and slower economic activity should see the Reserve Bank maintaining a cash rate hold at its August meeting.
However, the bank warned that a rate increase cannot be ruled out at its August or November meetings.
