Australian inflation remained stubborn in the opening month of 2026, with the consumer price index rising 3.8% in the 12 months to January.
According to the latest Australian Bureau of Statistics data, the annual figure remains unchanged from December, though underlying pressures suggest a complex economic landscape.
Michelle Marquardt, ABS head of prices statistics, noted that while the headline rate held firm, the trimmed mean—a key measure of underlying inflation—edged up to 3.4%, signaling persistent price growth across the economy.
Housing emerged as the primary driver of inflationary pressure, soaring 6.8% annually.
The spike was heavily influenced by a dramatic 32.2% jump in electricity costs, largely attributed to the cessation of the Commonwealth Energy Bill Relief Fund and various state rebates.
