ANZ-Roy Morgan Consumer Confidence decreased 1.4% last week, now sitting 7.4% below the same week a year ago but just above the 2022 weekly average.

While it was down nationally the largest decreases were in NSW and Tasmania, with Victoria bucking the trend. Confidence dropped 5.6% in NSW, 0.7% in QLD, 0.8% in SA and 2.8% in WA, while it increased in Victoria by 2.9%.

Driving the decreases were falls in sentiment regarding the performance of the Australian economy over the next year and whether now is a good or bad time to purchase major household items.

Commenting on the results ANZ head of Australian Economics, David Plank said inflation expectations rose to its highest level since December 2014. “With petrol prices at record highs during the past few weeks the lift in inflation expectations is not surprising,” he said. “This was despite the easing of Covid restrictions in NSW and the imminent reopening of international borders to tourists.”

He added that the expectations of higher inflation might have had a dampening effect on overall sentiment.