Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Australia CPI inflation unexpectedly remains steady at 3.4% in Jan

Published 28/02/2024, 11:40 am
Updated 28/02/2024, 11:40 am
© Reuters.

Investing.com-- Australian consumer inflation remained steady in January from the prior month, missing market expectations for an increase in price pressures, but also remaining above the Reserve Bank’s annual target. 

Consumer price index (CPI) inflation grew 3.4% year-on-year in January, data from the Australian Bureau of Statistics (ABS) showed on Wednesday. The reading was lower than expectations of 3.6%, and was steady from December’s reading, which was Australia’s lowest CPI reading since November 2021. 

Housing and rental prices remained a key driver of inflation, while rebates on electricity helped ease utility costs. Food inflation remained elevated, while recreational spending dropped. 

Core CPI inflation, which excludes volatile items such as fuel, fresh food and holiday travel and presents a clearer picture of underlying inflation, rose 4.1% in January, declining from the 4.2% seen in December. 

While inflation has eased substantially from the 30-year peaks seen in early-2023, it still remains well above the Reserve Bank of Australia’s 2% to 3% annual target. The central bank expects CPI to only fall within its target by mid-2025, and to hit the midpoint of the target range by 2026. 

Wednesday’s reading, while lower than expected, lent some credence to a recent warning from the RBA that sticky Australian inflation could potentially spur more interest rate hikes by the central bank. 

The RBA had hiked rates by a cumulative 425 basis points since 2022, as it moved to curb a post-COVID spike in inflation.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.