RTTNews - Australia's median expected inflation rate for June rose to 2.8% from 2.3% in May, the latest Melbourne Institute Survey of Consumer Inflationary Expectations said Thursday.

According to Sam Tsiaplias, Research Fellow at the Melbourne Institute, the increase in the consumer inflation expectations came on the back of the larger than expected rise in GDP for the first quarter, and also appeared to be partially associated with a recent hike in petrol prices. Despite the increase, the inflationary expectations remained within the Reserve Bank's target band of 2%-3%, Tsiaplias said.

Meanwhile, the the proportion of consumers expecting prices to be within the target band in the next 12 months was at its highest level since February 2008, the report added.

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