Consumer confidence is at a 32-month high, with last week's figures revealing a rise of 2.5 points to 88.5 points. The four-week moving average also showed a slight increase, reaching 86.9 points.
There has been a decline in 'weekly inflation expectations', which fell by 0.4 percentage points to 4.6 percent. The four-week moving average dropped by 0.1 points, settling at 5.0 percent.
For 'current financial conditions' over the past year, there was an increase of 1.8 points. In contrast, 'future financial conditions', projected over the next 12 months, saw a slight decrease of 0.3 points.
The measure of 'short-term economic confidence' for the upcoming year improved by 1.8 points, while 'medium-term economic confidence', looking ahead five years, experienced growth of 3.9 points.
The subindex that measures the 'time to buy a major household item' rose significantly by 5.1 points.
"ANZ-Roy Morgan Australian Consumer Confidence rose 2.5 points last week to 88.5 points, its highest level since May 2022," ANZ Economist Sophia Angala remarked.
"Households are feeling more confident about the economic outlook, with short-term economic confidence rising to its highest level since April 2022 (before the first rate hike in May 2022), while economic confidence over the next five years reached a 12-month high.
The decline in weekly inflation expectations and the broad-based lift across the subindices may have been influenced by discussion that the Reserve Bank of Australia (RBA) could cut rates at its February meeting. This comes after the quarterly CPI indicator showed that the RBA’s preferred measure of inflation, the trimmed mean, printed below RBA forecasts in Q4."
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