Australia's Inflation Holds Steady at 2.5% in January, Core Inflation Edges Up

The Reserve Bank's preferred inflation measure rose slightly to 2.8%, maintaining its position within the target range.

The Australian Bureau of Statistics (ABS) reported that headline inflation remained unchanged at 2.5% in January, matching market expectations.
Core inflation, measured by the trimmed mean, rose slightly to 2.8%, up from 2.7% in December, but still within the Reserve Bank of Australia's (RBA) 2-3% target range.
The RBA recently cut the cash rate by 25 basis points to 4.1%, citing softening inflationary pressures as a key factor in its decision.
Electricity prices rose nearly 9% in January, driven in part by the expiration of Queensland's $1,000 energy rebate, while housing costs also saw an uptick.
Despite the rise in core inflation, policymakers and economists view the overall data as a positive sign that inflation is trending in the right direction.