According to a recent report by the research firm Roy Morgan, homeowners expect to experience an inflation rate of 3.4% for the next 2 years. This figure is up slightly from the record lows recorded in August, but remains below pre-pandemic estimates.
Outlooks differed according to the present status of the respondents. Australian homeowners settling their mortgages had lower inflation expectations (3.1%) moving forward, while those renting expect to see a significantly higher rate (3.6%).
Expectations also varied by region, with respondents in New South Wales anticipating an inflation rate of 3.2%, Tasmania expecting 3.3%, Victoria 3.4%, Queensland expecting 3.5%, and Western and Southern Australia 3.6%.
It is worth stressing that these estimates were made prior to the discovery of the more contagious UK strain of the COVID-19 virus, and its subsequent spread across many regions of the world. Another economic slowdown could further affect the inflation outlook, along with the economy as a whole. This time, however, direct government support may be harder to come by.