Melbourne Institute (MI) Inflation Expectations.

Of very little impact on the AUD

  • Up by 0.2% to 2. 1% in December from 1.9 per cent in November.
  • It is now just above the lower bound of the Reserve Bank of Australia’s (RBA) target band of 2 – 3 per cent

According to Dr . Viet Nguyen , a Research Fellow at the Melbourne Institute:

“ The consumer expected inflation rate has been below the mid-point of the RBA’s target band in thirteen out of the last fourteen months, with the only exception being July 2013. Meanwhile, both actual and expected pay growths show improvements from the surveys in June and September, but both remain moderate. The current moderate inflationary and wage expectations, to a certain extent, reflect consumers’ expectations of moderate growth in the coming months. ”