Rate rise next week firms after surprise inflation jump

Treasurer Jim Chalmers has denied increased government spending has contributed to higher than expected inflation after a spike in the consumer price index greatly increased the prospects of a first interest rate rise in more than two years.

Just over a year since the government declared that “the worst is behind us,” new inflation data released on Wednesday showed the Reserve Bank of Australia’s preferred measure of underlying inflation rose to 3.4 per cent in the December quarter, above the RBA’s forecast of 3.2 per cent and the 2.5 per cent mid-point of its target range.

Source: https://www.afr.com/policy/economy/rate-rise-next-week-firms-after-surprise-inflation-jump-20260127-p5nxed