Inflation expectations among Australian consumers remained unchanged in August, a survey by Melbourne Institute showed Thursday.
The median expected inflation rate remained at 2.4 percent in September. This is within the Reserve Bank of Australia's target band of 2-3 percent.
However, the expected pay growth over the next 12 months declined further, to 1.7 percent in August from 2.4 percent in May and 3.5 percent in February.
Moderate inflationary expectations along with plummeting wage expectations provide wiggle-room for monetary easing, should economic activity show further signs of slowing, said Viet Nguyen, a Research Fellow at the Institute.
by RTT Staff Writer
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