MNI:Australia MI Infl Expectation Up,Pay Growth Expectation Dn

By Sophia Rodrigues

     SYDNEY (MNI) - Inflation expectations rose slightly in March but has

remained below 4.0% for five months in a row. Pay growth expectations fell in

the first quarter.

     Data published by the Melbourne Institute Thursday showed inflation

expectations on a trimmed mean basis rose to 3.7% in March, compared with 3.6%

in February.

     On a weighted mean basis, inflation expectations remained at 2.4% for the

third month in a row. 

     In the February Statement on Monetary Policy, the Reserve Bank of Australia

cited behavior of inflation expectations as one of the key risks for inflation

outlook and to that extent the data assumes increased importance.

     Melbourne Institute also published pay growth and expectations on pay in

the recent survey. The data showed pay growth accelerated in Q1 but expectation

on pay fell to 1.8% from 2.4% in Q4.

     From the Melbourne Institute Consumer Inflationary Expectations survey for

March published Thursday.

                                            March          February

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

                                        %, Annual         %, Annual

Expected Inflation (trimmed mean)            +3.7              +3.6

Expected Inflation (weighted mean)           +2.4              +2.4

Annual Pay Growth                   +2.0% (March)  +1.5% (December)

Pay Growth Expectation              +1.8% (March)  +2.4% (December)

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

[TOPICS: MTABLE,MALDS$,M$A$$$,M$L$$$,MT$$$$]