MNI Australia MI Inflation Expectations Back Below 4% In July

By Sophia Rodrigues

     SYDNEY (MNI) - Inflation expectations pulled back in July and suggests

inflationary pressures remain subdued in line with the signals from National

Australia Bank's monthly business surveys.  

     Data published by the Melbourne Institute Thursday showed inflation

expectations on a trimmed mean basis fell back to 3.9% in July, after rising

above 4.0% in June for the first time in eight months. 

     On a weighted mean basis, inflation expectations fell to 2.3%, after

touching the mid-point of the RBA's target band for the first time in 10 months

in June.

     From the Melbourne Institute Consumer Inflationary Expectations survey for

July published Thursday.

                                         July       June

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

                                    %, Annual  %, Annual

Expected Inflation (trimmed mean)        +3.9       +4.2

Expected Inflation (weighted mean)       +2.3       +2.5

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

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