Econosights: What are inflation expectations telling us? | AMP Capital

Econosights: What are inflation expectations telling us?   Key points An increase in short-term consumer inflation expectations reflects the current high inflation environment. While consumers are assuming that inflation will remain elevated at its current level for the next 1-2 years, this is unlikely as forward-looking inflation indicators have been falling for months. Australian medium-term inflation expectations remain well anchored which indicates that the market believes in the RBA’s 2-3% inflation target and does not …