REPEAT: MNI: Australia MI Infla View Fall to Lowest Since June

Repeats Story Initially Transmitted at 00:00 GMT Feb 15/19:00 EST Feb 14

By Sophia Rodrigues

     SYDNEY (MNI) - Inflation expectations fell in February to a level last seen

in June last year, likely reflecting the lower-than-expected consumer price

index inflation in Q4 of last year.

     Data published by the Melbourne Institute Thursday showed inflation

expectations on a trimmed mean basis fell to 3.6% in February, after staying at

3.7% in each of the three months prior.

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

below the mid-point of the Reserve Bank of Australia's 2% to 3% target band.

     In the February Statement on Monetary Policy, the RBA cited behavior of

inflation expectations as one of the key risks for inflation outlook and to that

extent the data assumes increased importance in coming months.

     From the Melbourne Institute Consumer Inflationary Expectations survey for

February published Thursday.

                                     February    January

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

                                    %, Annual  %, Annual

Expected Inflation (trimmed mean)        +3.6       +3.7

Expected Inflation (weighted mean)       +2.4       +2.2

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

[TOPICS: MTABLE]