Australia’s inflation sticks at 3.8%, pushing rate cuts further out

Australia’s latest CPI shows inflation climbed to 3.8% in December, stronger than markets expected.

Prices rose 0.6% over the quarter, driven by housing, food and transport, keeping core inflation above the RBA’s comfort zone.

With trimmed mean still elevated, the print reinforces a “higher for longer” rates outlook and delays hopes of near-term easing.