The pressure will be on the RBA after the high January CPI inflation rate, bringing their March cash rate target review into sharper focus

CPI inflation came in at 3.8% in January, unchanged from the December rate, but higher than the expected 3.7% dip. 

The largest contributor was housing related costs, up +6.8%, up from +5.5% in December. This was due to cost rises for electricity, new dwellings, and rents.. 

This was followed by food, up +3.1%. Recreation costs rose +3.7%. 

There are no sign of inflation easing here, and that will attract financial market speculation about the RBA's next rate review on March 17, 2026. This data suggests their current settings are not effective in driving down inflation.

Image: