Amid heightened geopolitical tensions and rising global oil costs, two key economic indicators have dominated attention this week: inflation and consumer confidence.
Australia’s monthly CPI remained flat in February, with annual inflation easing slightly to 3.7% but still sitting above the Reserve Bank’s target range of 2-3%, signalling that inflation was already a concern before the impact of recent fuel price shocks, which will be included in next month's data release.
At the same time, consumer confidence fell to historic lows. This drop has likely been driven by soaring petrol prices, concerns around further rate rises and mounting pressure on household finances from inflation.
In this interview, ANZ Senior Economist Adelaide Timbrell breaks down what these figures mean for households and businesses, the likelihood of further rate hikes, and why sentiment has deteriorated so sharply.
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