The % increase in the value of goods and services over a period of one year, adjusted for the rate of inflation. ... Influences on consumption Consumer expectations If consumers expect a higher rate of inflation, higher real incomes or future shortages of goods then they would tend to spend more and save less in the short term and vice versa. ... The RBA's strong focus on maintaning low inflation meant the RBA took quick action to ward off inflationary pressures. ... Low inflation helped keep Interest rates down, encouraging consumer spending. ... Business and consumer confidence wer...

• Word Count: 6378
• Approx Pages: 26