- People that were randomly told about the RBA’s inflation target of 2-3% were much less likely to believe that inflation was well above the target than people that were not told.
- About 44 per cent of the people that were told about the RBA target believed current inflation was a lot above 2-3% compared to 51 per cent of those not told.
- About 29 per cent of those told about the RBA target expected inflation in a year’s time to be a lot above 2-3% compared to 33 per cent of those not told.
- Some people were more affected by the communication than others, including respondents that identified as female, had lower educational attainment or an `average’ understanding of inflation.
by Dan Andrews, Matt Nolan and Lachlan Vass