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Financial News: Australia Inflation Expectations Ease In August

Australia Inflation Expectations Ease In August

08/11/2022 - 00:52:00 (RTTNews)

(RTTNews) - Inflation expectations among Australian households eased in August, the latest Survey of Consumer Inflationary and Wage Expectations from the Melbourne Institute showed Thursday.

The expected inflation rate fell by 0.4 percentage points to 5.9 percent in August. Total pay is expected to grow by 0.8 percent over the next twelve months.

The institute said despite the slowdown in inflation expectations year-ahead inflation expectations remain elevated, with a large proportion of consumers also expecting higher prices in the next coming year.

Although inflation expectations stay high, wage expectations fell substantially in August, thereby providing little indication, thus far, of a wage-price spiral, the institute noted.

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