The expected inflation rate (30‐per‐cent trimmed mean measure), reported in the Melbourne Institute Survey of Consumer Inflationary Expectations, fell in August, to 3.5 per cent from 3.7 per cent in July.

In August, the proportion of respondents (excluding respondents in the 'don't know' category) expecting the inflation rate to fall within the 0‐5 per cent range increased to 67.9 per cent from 67.0 per cent in July. This is attributable to the increases in the proportions of respondents expecting no price change and

those expecting prices to rise by 2 per cent or less. The weighted mean of responses within this range decreased to 2.2 per cent in August from 2.4 per cent in July, indicating that the distribution of response within the 0‐5 per cent range is shifting towards its lower end.