SYDNEY (Dow Jones)--A survey of inflationary expectations shows Australian consumers expect prices to rise 3.1% over the next 12 months, down from 3.8% in August.
The Melbourne University's Institute of Applied Economic and Social Research said Thursday the proportion of survey respondents expecting annual inflation to fall within the Reserve Bank of Australia's target band of 2.0% to 3.0% increased to 18.7% in September from 17.8% in August.
The survey uses the median rate for price rises expected over the next 12 months.
The institute said the RBA's 25 basis point cash rate hike to 6.5% in August appeared to have curbed inflationary expectations.
Australia's consumer price index rose 2.1% year-on year in the June quarter of 2007.
-By Sam Holmes