Australian consumers expect prices to rise in September, reversing falls over the past four months, due to strong jobs and economic growth, a survey shows.
The Melbourne Institute survey of consumer inflationary expectations found the median expected inflation rate rose to 3.1 per cent in September, from 2.8 per cent in August.
The result followed four monthly falls for inflation expectations.
The proportion of consumers expecting inflation to be within the Reserve Bank of Australia's (RBA's) two to three per cent band increased slightly to 19.0 per cent in September from 18.9 per cent in August.
Melbourne Institute research fellow Michael Chua said there was a slight increase in the median consumer inflationary expectations this month.
"(It was) probably associated with news about better labour market outcomes in August, with the unemployment rate falling to 5.1 per cent and 30,900 more persons being employed and robust GDP growth of 1.2 per cent in June," Dr Chua said.
Dr Chua said the number of respondents expecting inflation to accelerate had increased to 74.5 per cent in September from 73.5 per cent in August.
The number of people expecting steady inflation had fallen to 13.9 per cent from 16.6 per cent.
The survey was conducted in the same week the central bank left the cash rate at 4.5 per cent and the national unemployment rate fell to 5.1 per cent.
The median expected inflation rate of managers and professionals rose to 3.4 per cent in September from 3.1 per cent in August.
The survey also found clerks and salespersons registered the
highest median expected inflation rate of 4.0 per cent while the state of Queensland recorded the highest median expected inflation rate of 4.2 per cent in September.