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Economic Buzz: Australia inflation holds at 3.8%, stays outside RBA comfort zone
25-Feb-2026 10:16
Australia's annual CPI held at 3.8% in January 2026, remaining outside the Reserve Bank of Australia's 2'3% target, while the trimmed mean CPI edged higher to 3.4% y/y. Services inflation eased to 3.9% helped by lower pharmaceutical prices, but goods inflation accelerated to 3.8% as electricity costs surged following the expiry of state rebates, keeping inflation broad-based across housing, clothing, food, and education. On a monthly basis, CPI rose 0.4%, moderating from December's 1.0% jump.

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