Australia’s inflation expectations increased in March, survey data from the Melbourne Institute showed Thursday.

The TD Securities -Melbourne Institute monthly inflation gauge rose 0.4 percent in March, after staying flat in February.

In the twelve months to March, the inflation gauge increased 1.5 percent, following a 1.3 percent rise for the twelve months to February.

Annette Beacher, chief Asia-Pac macro strategist at TD Securities said headline inflation is expected to barely rise by 0.1 percent in the quarter, to be 1.2 percent higher than a year ago.

“While low inflation certainly allows the RBA to cut the cash rate further, we pencil in only one more cash rate reduction to 2 percent in May, with risks of delay into the second half of the year, should the housing sector keep expanding at an uncomfortable pace,” Beacher said.

The material has been provided by InstaForex Company –