Australian Inflation Surges, Exceeding Central Bank Expectations

Australia's inflation rose to 3.6% annually in December, with core inflation at 3.4%, both above Reserve Bank forecasts, suggesting potential rate hikes.

Insights:
Australia's inflation rate accelerated more than anticipated in the December quarter, with the Consumer Price Index (CPI) rising by 3.6% annually, up from 3.2% previously. The latest figures, released by the Australian Bureau of Statistics on Wednesday, show a quarterly CPI increase of 0.6%, aligning with forecasts.
Buildings light up across the city skyline at dusk in Brisbane, Australia, on December 8, 2025. REUTERS/Hollie Adams
Buildings light up across the city skyline at dusk in Brisbane, Australia, on December 8, 2025. REUTERS/Hollie Adams
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