MNI: Australia Melbourne Inst. Nov Inflation Expectations Fall

     SYDNEY (MNI) - From the Melbourne Institute Consumer Inflationary

Expectations survey for November published Thursday.

                                     November    October

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

                                    %, Annual  %, Annual

Expected Inflation (trimmed mean)        +3.7       +4.3

Expected Inflation (weighted mean)       +2.4       +2.4

     FACTORS: Annual inflation expectations fell in November with the trimmed

mean measure declining to the lowest since June. Expectations on a weighted-mean

basis, however, remained closed 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

the latest fall is likely in response to lower than expected inflation in the

third quarter. Consumer price index inflation rose just 0.6% q/q, keeping y/y

CPI below the RBA's 2% to 3% target band for the second quarter in a row and for

the 11th time in the last 12 quarters. Underlying CPI rose just 0.35% q/q,

taking y/y to 1.85% -- it has remained the RBA's target band since Q4 2015. Both

headline and underlying CPI fell short of the MNI survey median forecasts that

each would rise 2.0% y/y.

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

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