RTTNews - Thursday, the Melbourne Institute Survey of Consumer Inflationary Expectations showed that the median expected inflation rate in Australia dropped to 2.3% in May from 2.4% in April.

Sam Tsiaplias, Research Fellow at the Melbourne Institute noted that the consumer inflationary expectations in May were similar to the expectations observed in the previous month, but was well below the 5.2% rate seen in May 2008.

Tsiaplias said, Given the relatively unchanged inflationary expectations in May, the immediate effects of the Budget on consumer inflationary expectations appear to have been minimal. Median consumer inflationary expectations have now been comfortably within the Reserve Bank's 2-3% target band since December 2008.

The consumer inflationary expectations survey was carried out during the week May 11 to May 17, encompassing the 2009-10 Commonwealth Budget announced on May 12.

For comments and feedback: contact editorial@rttnews.com