Consumers expect prices to increase
Australian consumers expect prices to increase in September, opposing discounts over the past four months, thanks to a string of strong economic data, a survey shows.
After four monthly declines, the median expected inflation rate jumped to 3.1 per cent in September, from 2.8 per cent in August, according to the Melbourne Institute Survey of Consumer Inflationary Expectations.
Respondents who expected a rise in inflation likewise increased from 73.5 to 74.5 per cent per cent. Meanwhile, those not foreseeing any movement fell to 13.9 per cent from 16.6 per cent.
Melbourne Institute research fellow Dr Michal Chua said the slight increase in the median consumer inflationary expectations this month were probably influenced by better-than-expected labour figures and robust gross domestic product growth.
The survey was conducted in the same week the central bank left the cash rate at 4.5 per cent and the national unemployment rate fell to 5.1 per cent.
The proportion of consumers who expected inflation to be within the Reserve Bank of Australia's 2 to 3 per cent band went up to 19 per cent in September, from 18.9 per cent a month earlier.
By sector, clerks and salespeople posted the highest median expected inflation rate of 4 per cent.
The median expected inflation rate of managers and professionals, meanwhile, jumped to 3.4 per cent, from 3.1 per cent.
In terms of states, Queensland registered the highest expected inflation rate of 4.2 per cent, while South Australia recorded the lowest, at 1.9 per cent.