Original article by Roy Morgan
Market Research Update – Page: Online : 12-Oct-21

In September 2021, Australians expected inflation of 4.5% annually over the next two years, up 0.2% points and the highest Inflation Expectations since October 2018. Inflation Expectations are now 1.2% points higher than a year ago (3.3%). Inflation Expectations are still 0.2% points below their long-term average of 4.7%, but a full 1% point higher than the record low 2020 monthly average of 3.5%. A look at Inflation Expectations by Generations shows that there is now agreement between people of different ages about how much prices are set to rise. Inflation Expectations have increased across the board but have increased most rapidly for Australians aged under 60 – led by Millennials – up 1.6% points from a year ago to 4.5% in September. Generation X, now aged from 45-60, have the highest Inflation Expectations at 4.6% in September, an increase of 1.3% points from a year ago. The Inflation Expectations of Generation Z have also increased significantly, up 1.2% points to 4.5% – matching the increase of Australians overall. Although Inflation Expectations for Baby Boomers are in line with the national average at 4.5% this is an increase of only 0.7% points from a year ago while older Australians, aged 75+, the Pre-Boomers, now have the lowest Inflation Expectations at 4.2%, up only 0.6% points from a year ago. On a State-based level Inflation Expectations are highest and well above the national average in Tasmania at 5.1%. Inflation Expectations are above the national average in New South Wales at 4.7%.

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