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A survey of Australian consumers' expectations of inflation increased 0.4 percent in December to 3.6 percent.
The Melbourne Institute survey showed only 17.7 percent of those surveyed expect the inflation rate to fall within the Reserve Bank of Australia's target range of two to three percent. That compares to 18.7 percent in November.
Those expecting prices to increase rose by 2.8 percent, with the proportion forecasting no change in prices down 3.5 percent and 0.1 percent predicted prices to fall..
The country's official consumer price inflation rate for the September quarter was 1.3 percent, as reported by the Australian Bureau of Statistics.
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