Australians think inflation will rise again

Thursday 15 April 2010

Article by Mozo

The number of Australians who think that inflation will remain within the Bank of Australia’s (RBA’s) two to three per cent band has declined for the second month in a row, new figures show.

Research from the Melbourne Institute showed that only 15.9 per cent think that inflation will stay in this bracket in April, compared to 18.6 per cent in March.

Other findings include consumer inflations expectations rising to 4.1 per cent, from 3.2 per cent in March,

It is thought that low unemployment and a growing economy will lead to the rise in inflation.

Michael Chua, a research fellow at the Melbourne Institute, said: "For the first time since February 2009, the proportion of consumers expecting inflation to be within the RBA’s 2 per cent-three per cent band, is below its 12 month moving average."

Inflation has dropped so far this year, by 56.82 per cent on 2009’s figures, according to Index Mundi. It currently stands at 1.90 per cent.

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