Original article by Roy Morgan
Market Research Update – Page: Online : 1-Feb-23

In December 2022, Australians expected inflation of 6.0% annually over the next two years, down 0.5% points from a decade high of 6.5% reached in November. Inflation Expectations in December are 1.2% points higher than a year ago and up 2.4% points from two years ago. Inflation Expectations are now significantly below the ABS CPI figures for the year to December 2022, which showed consumer price inflation reaching a 32-year high of 7.8%. The early indications from this year are that the decline in Inflation Expectations at the end of 2022 has continued, with the latest weekly reading falling to only 5.1%. A deeper look at Inflation Expectations by region shows that expectations are consistently far higher in regional areas than in the Capital Cities. At a national level Inflation Expectations were at 6.7% in the Country Areas, compared to 5.6% in the Capital Cities. The largest gap is in Victoria, with Inflation Expectations at 7.4% in Country Victoria compared to only 5.4% in Melbourne. The data for the Inflation Expectations series is drawn from the Roy Morgan Single Source, which has interviewed an average of 4,700 Australians aged 14+ per month over the last decade and includes interviews with 5,964 Australians aged 14+ in December 2022.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN BUREAU OF STATISTICS