Consumer confidence up despite inflation worries
Image: RNZ
Consumer confidence is improving but the economic outlook remains soft, with inflation expectations rising to the highest level in more than two years.
The ANZ-Roy Morgan Consumer Confidence lifted six points to 98.8 in June, following last month's drop to 92.9.
ANZ chief economist Sharon Zollner said a number of key indicators remained in negative territory, including the proportion of households who thought it was a good time to buy a major household appliance, at -7.
In addition, annual inflation expectations rose slightly to 4.9 percent - the highest level since April 2023.
"A few potential explanations seem possible," she said, including global tariff noise and concerns about energy prices.
She said the increase was in line with food price inflation, which was running at 4.4 percent.
"Household electricity prices are also rising as higher lines charges are passed on."
However, she said a net 20 percent of consumers expected to be better off this time next year.
"The economy is recovering. It's just taking a little longer than expected.
"Households might be sceptical but domestic inflation is on the retreat, and that should lay the path for the RBNZ [Reserve Bank] to ultimately be able to shore up the economic recovery with a little more monetary easing."
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