By James Glynn
SYDNEY--Australian consumer confidence was weaker last week amid warnings that the Reserve Bank of Australia risks tipping the economy into recession if it continues with its record-breaking run of consecutive interest-rate increases.
Consumer confidence decreased by 1.8 points last week to 85.9, according to a survey by the ANZ Bank and pollster Roy Morgan.
Weekly inflation expectations also increased 0.3 percentage points to 5.7%, the data showed.
The confidence report comes a day ahead of the release of Australia's fourth-quarter inflation data, which are expected to show price pressures peaking at their highest level since the 1980s.
The RBA is widely expected to deliver a ninth consecutive rise in interest rates at a policy meeting on Feb. 7, taking policy settings further into restrictive territory.
Some economists have argued in the last week that the RBA would be making a grave error if it continues to tap the monetary policy brakes.
Critics of the central bank argue that after it was slow to respond to emerging inflation pressures a year ago, it has raised interest rates at speed to restore its credibility, but it now risks going too far and flattening economic growth.
The confidence report showed sentiment around current financial conditions fell 2.5 points last week, its first loss since early December. On the question of buying a major household item, confidence fell by 4.1 points last week.
The weekly ANZ-Roy Morgan Australian Consumer Confidence Rating is based on 1,502 interviews conducted online and over the telephone during the week to Sunday.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
01-23-23 1744ET
