From Dow Jones:
"SYDNEY (Dow Jones)--Australian consumer inflationary expectations surged in October, marking the second straight gain after five straight months of declines, according to an industry survey published Thursday.
The Melbourne Institute Survey of Consumer Inflationary Expectations median expected inflation rate in September rose to 3.8% from 3.1% in September, partly reflecting a better-than-expected monthly jobs report for September. Still, the Reserve Bank of Australia surprised markets by keeping interest rates steady at 4.5% at its most recent meeting earlier this month.
Still, the survey found the amount of consumers expecting inflation to be within the RBA's target 2%-3% band decreased in the month to 15.1% from 19.0% a month ago.
"More respondents in this survey are expecting price changes greater than 10% in the next 12 months," said Michael Chua, a research fellow at the Melbourne Institute. "In contrast, the inflationary expectations of managers and professionals decreased from 3.4% to 3.3%, suggesting that not all respondents share the view that inflation will rise strongly.""
