REPEAT:MNI Australia MI Inflation,Wage Expectations Up In June

Repeats Story Initially Transmitted at 01:00 GMT Jun 14/21:00 EST Jun 13

By Sophia Rodrigues

     SYDNEY (MNI) - Inflation and pay growth expectations rose in June, boding

well for the outlook for inflation and for the Reserve Bank of Australia's

monetary policy stance for the next move in the cash rate to be up.

     Data published by the Melbourne Institute Thursday showed inflation

expectations on a trimmed mean basis rose to 4.2% in June, rising above 4.0% for

the first time in eight months. 

     On a weighted mean basis, inflation expectations also rose in June to 2.5%

from 2.4%, touching the mid-point of the RBA's target band for the first time in

10 months.

     MI also published data on pay growth and expectations which showed pay

growth in the 12-month period to June fell but expectations on pay growth rose.

     From the Melbourne Institute Consumer Inflationary Expectations survey for

May published Thursday.

                                         June           May

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

                                    %, Annual     %, Annual

Expected Inflation (trimmed mean)        +4.2          +3.7

Expected Inflation (weighted mean)       +2.5          +2.4

Pay Growth                               +1.4  +2.0 (March)

Expected Pay Growth                      +2.5  +1.8 (March)

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

[TOPICS: MTABLE]