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Economic Buzz: Australia inflation rebounds to 3.8% as services and power costs surge
28-Jan-2026 10:41
Australia's annual inflation rose to 3.8% in December 2025 from 3.4% in November, remaining above the RBA's 2'3% target. Services inflation hit a two-year high of 4.1%, driven by holiday travel, accommodation, and rents, while goods inflation edged up as electricity prices surged after rebate expiries. Price pressures stayed broad-based across food, education, and recreation. The trimmed mean CPI rose to 3.3% y/y, with monthly CPI up 1.0%.

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