Australia’s CPI rose +0.5% MoM SA (+0.4% NSA) and +3.8% YoY in January 2026, indicating steady headline inflation pace.

• Trimmed mean inflation increased to +3.4% YoY (Dec: +3.3%), suggesting a slight firming in underlying inflation; monthly trimmed mean was +0.3% MoM SA.

• Housing inflation accelerated to +6.8% YoY (Dec: +5.5%), the largest contributor, driven by electricity, new dwellings (+3.5% YoY), and rents (+3.9% YoY).

• Electricity prices surged +32.2% YoY (Dec: +21.5%), reflecting the end of government rebates; excluding rebates, electricity rose +4.5% YoY, tied to annual retail price reviews.

• Goods inflation rose to +3.8% YoY (Dec: +3.4%) while services eased to +3.9% YoY (Dec: +4.1%), showing convergence between the two categories.

• Non-tradables inflation increased to +4.9% YoY (Dec: +4.6%) while tradables slowed to +1.9% YoY (Dec: +2.1%), indicating stronger domestically driven price pressures.

• Food and non-alcoholic beverages inflation slowed to +3.1% YoY (Dec: +3.4%), though meals out and takeaway remained elevated at +3.9% YoY due to wage and input costs.

• Recreation and culture rose +3.7% YoY (Dec: +4.4%), with domestic holiday travel and accommodation +5.6% YoY, a moderation from +9.6% YoY previously.