Inflation expectations among Australian consumers declined in August, a survey by the Melbourne Institute showed Thursday.

The expected inflation rate fell to 2.3 percent in August from 2.6 percent in July. The expectations remained within the Reserve Bank of Australia's target of 2-3 percent.

The fall in the expected inflation rate, despite the latest cut in cash rate and the recent depreciation of the Australian dollar, signals that consumers expect weak to moderate economic activity in the coming months, Viet Nguyen, a Research Fellow at the Melbourne Institute, said.