Business News Asia
Last week, Australia’s consumer confidence index fell to its lowest level since August 2020.
The consumer confidence index of the Australian and New Zealand Banking Group (ANZ) fell by 1.3% compared with the previous week. The weekly inflation forecast rose by 0.2% to 5.3%.
Confidence in the current economy declined by 4.4%, while confidence in the future economy fell by 0.4%.
Consumers are less confident in spending large amounts of money. Confidence in purchasing large household items fell 2.7%, a 14.7% decline over the past three weeks.
Inflation in Australia is also growing at its fastest pace in 20 years as the Reserve Bank of Australia (RBA) raised interest rates in early May for the first time since 2010. This signaled the start of an aggressive monetary policy.
Fuel costs have also risen in recent weeks, leading to higher inflation expectations.
David Plank, ANZ’s Australian head of economics, said the cost of living is a major concern for consumers.