Australia's inflation expectations are back to their highest level since the end of 2023, which is a worrying sign for the Bank of Australia. According to the latest consumer confidence survey by ANZ and the polling agency Roy Morgan, inflation expectations are currently 5.5% based on a four-week moving average. At a time when the inflation data showed an unexpectedly strong momentum, inflation expectations also increased. Economists at some large banks are even considering raising interest rates as early as February.

Australia's inflation expectations are back to their highest level since the end of 2023, which is a worrying sign for the Bank of Australia. According to the latest consumer confidence survey by ANZ and the polling agency Roy Morgan, inflation expectations are currently 5.5% based on a four-week moving average. At a time when the inflation data showed an unexpectedly strong momentum, inflation expectations also increased. Economists at some large banks are even considering raising interest rates as early as February.