Consumer confidence rose five points to 98.3 in April, according to the latest ANZ-Roy Morgan survey, shoring up the upward trend that was starting to look wobbly.
But inflation expectations also rose sharply – up 0.5 points to 4.7%, the highest reading since July 2023.“Household inflation expectations soared in April, surprisingly,” said ANZ chief economist Sharon Zollner.“Household inflation expectations matter less for the inflation outlook than the expectations of those who actually directly set prices.
“But all else [being] equal, when households are expecting high inflation, that can boost wage demands and make it easier than otherwise for firms to raise their prices.”
The jump could have been due to the impact of talk about global tariffs being inflationary, Zollner said.
Read more at the NZ Herald here.
