Australia Melbourne Institute Oct Inflation Expectations Rise

     SYDNEY (MNI) - From the Melbourne Institute Consumer Inflationary

Expectations survey for October published Thursday.

                                      October  September

--------------------------------------------------------

                                    %, Annual  %, Annual

Expected Inflation (trimmed mean)        +4.3       +3.8

Expected Inflation (weighted mean)       +2.4       +2.2

     FACTORS: Annual inflation expectations rose in October with the trimmed

mean measure rising to the highest level in three months. Expectations on a

weighted-mean basis also rose to the highest level since July and close to the

middle of the Reserve Bank of Australia's 2%-to-3% target band.

     TAKEAWAY: Inflation expectations have been volatile in recent months, but

generally any increase could be attributed to rise in electricity charges in

this quarter. The third quarter consumer price index inflation is due later this

month and that may give a clearer picture of inflation trends in the economy.

--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com

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