Australia's Consumer Inflation Expectations rose to a 7-month high of 3.2% for July, according to the Melbourne Institute's survey. Indeed, rising oil costs in recent months may have contributed to worries that the price of goods will rise in the coming month. Three of the last four months saw consumer expectations of such upward pressure rise. A deeper look into the data shows that nearly 70% of the public foresaw these costs increase with only 3.2% suggesting they would decrease. The news comes just days after the Reserve Bank of Australia suggested that it could possibly cut its overnight rate, saying that the "outlook for further inflation allows some scope for further easing of monetary policy, if needed." If such action does indeed occur, inflationary expectations could be further sparked and thus possibly adding upward pressure to overall prices. Meanwhile, construction input costs rose by 5.4% in June, adding worries that the affordability of housing may soon dwindle away.
