2019.11.1403:12:00UTC+00Australia Inflation Expectations Rise In November - Melbourne Institute

Australia's inflation expectations and actual pay growth increased in November, results of a survey by the Melbourne Institute revealed Thursday.

The expected inflation rate, which is the 30-percent trimmed mean measure, increased by 0.4 percentage points in November to 4.0 percent, the Melbourne Institute Survey of Consumer Inflationary and Wage Expectations showed. Economists had forecast an easing to 3.2 percent.

The proportion of respondents expecting an increase in prices rose by 4.3 percentage points to 62.7 percent, while the share of those anticipating no price change fell by 2.2 percentage points to 19.3 percent.

Total pay growth over the past 12 months climbed to 1.9 percent in November from 1.8 percent in October. In November, 48.3 percent of respondents reported a rise in total pay, while 10.7 percent reported a fall, the survey showed. Total pay was forecast to increase by 1.8 percent in the next 12 months.

"Given the inherent volatility in wage expectations, the data continue to suggest a relatively flat growth rate for the Wage Price Index (WPI) in the coming year," the Melbourne Institute said.

The results of the December survey are set to be released on December 12.