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Australia's Inflation Surge Sparks Rate Hike Predictions

1/28/2026

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Summary

Story summary

Australia’s inflation accelerated in the December quarter, prompting expectations of an RBA rate hike on Feb 3.
The trimmed mean CPI rose 0.9%, pushing annual rate to 3.4%.
Major banks, including Australia and New Zealand Banking Group (ANZ) and Westpac Banking Corporation (Westpac), forecast a quarter-point rise.
The Australian dollar strengthened as markets priced hikes.
Policymakers indicate the easing cycle may be over, with the RBA aiming to manage inflation.

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Story summary

Australia’s inflation accelerated in the December quarter, prompting expectations of an RBA rate hike on Feb 3.
The trimmed mean CPI rose 0.9%, pushing annual rate to 3.4%.
Major banks, including Australia and New Zealand Banking Group (ANZ) and Westpac Banking Corporation (Westpac), forecast a quarter-point rise.
The Australian dollar strengthened as markets priced hikes.
Policymakers indicate the easing cycle may be over, with the RBA aiming to manage inflation.