Consumer confidence rose despite inflation hitting a 32-year hit last year, suggesting that Aussies are used to the increased prices.
Another interest rate rise is also due next Tuesday; nevertheless the four-week consumer confidence average is hitting highs not seen since last July.
The ANZ-Roy Morgan Consumer Confidence index rose 0.9 percentage points to 86.8, with the four-week average jumping to 87.0.
This follows a shaky December that saw confidence hit a new low of 73.8.
While this January rise is pleasing, confidence levels still sit below the neutral level of 100, and well under the monthly average of 111.7 since 1990.
“Household inflation expectations dropped 0.6pts despite the news last week that annual inflation hit a 32-year high in Q4 2022,” notes ANZ senior economist Adelaide Timbrell.
“This is a signal that household inflation expectations remain somewhat anchored despite accelerating inflation through 2022.”
