Consumer inflation expectations rose by 0.4 percentage points in February to 5%, after staying below that level for seven months, according to the Melbourne Institute Survey of Consumer Inflationary Expectations on Thursday.

Twelve-month changes in the trimmed mean have remained positive, indicating this month's rise is part of a continuing trend, per the survey.

The rise appears to justify the Reserve Bank board's decision to lift the cash rate target to 3.85%, the survey added.