Rising Australian core inflation increases pressure for further interest rate hikes

Consumer prices rose faster than expected in January as core inflation hit a 16-month high. The data increases the likelihood of another interest rate hike.

洞察:
Australia AUAU consumer prices rose more than expected in January, with the trimmed-mean measure of core inflation reaching a 16-month high. Data released today, February 25, 2026, by the Australian Bureau of Statistics showed that core inflation has remained above the Reserve Bank of Australia target band of 2% to 3% for the seventh consecutive month. The figures topped the median forecast, increasing the likelihood of further interest-rate tightening by the central bank.
A woman selects fruits at a street market stall in Sydney’s central business district, Australia, February 3, 2026. REUTERS/Flavio Brancaleone
A woman selects fruits at a street market stall in Sydney’s central business district, Australia, February 3, 2026. REUTERS/Flavio Brancaleone
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