Australia's inflation expectations declined in August, a report from the Melbourne Institute showed Thursday.
The median expected inflation rate fell by 0.9 percentage points to 2.4 percent in August. This outcome is within the Reserve Bank of Australia's target band of 2-3 percent.
"The decline in the expected inflation rate this month suggests that the perceived inflationary impact of the carbon tax last month is likely to be transitory," said Viet Nguyen, a research fellow at the Institute.
The recent decrease in inflationary expectations together with the reported decreases in the official headline and underlying inflation rates in the June quarter will provide the RBA with ample room to support growth if necessary amid considerable uncertainty in the global economy, Nguyen said.
by RTT Staff Writer
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