Australia’s inflation expectations increased in January, survey data from the Melbourne Institute showed Thursday.
The expected inflation rate increased 0.7 percentage points to 4.7 percent in January.
In January, the proportion of respondents forecasting an increase in prices rose 3.6 percentage points to 67.0 percent. The proportion of respondents anticipating no price change fell 3.3 percentage points to 16.2 percent.
Looking forward, total pay is expected to grow 1.8 percent in the next 12 months, down from the 2.2 percent pay rise expected last month.
Data suggested weak pay growth rate for the wage price index in the coming year, similar to previous months survey results.