Consumer optimism on the increase in Australia

SYDNEY - Australian consumer inflation expectations fell sharply this month while confidence grew that the central bank would successfully contain price pressures, a survey shows.

The Melbourne Institute Consumer Inflationary Expectations survey found the median expectation of price increases in the coming year have fallen to 3.5 per cent this month, from 4.2 per cent last month.

People expecting annual inflation to fall within the Reserve Bank of Australia's target band of 2 to 3 per cent rose to 19 per cent, from 16.8 per cent last month.

- REUTERS