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flag Australia's strong job market in early 2026 fuels inflation concerns, raising chances of further interest rate hikes.

flag Australia's jobs market remained strong in early 2026, with employers adding thousands of positions, according to Commonwealth Bank's report. flag Annual wage growth dipped slightly to 3.1% in December from 3.2% in November but remains elevated. flag The tight labor market, combined with strong consumer demand, is expected to sustain upward pressure on inflation, increasing the likelihood of further interest rate hikes later in the year. flag Belinda Allen, the bank’s head of Australian economics, said the economy is in a solid position, but persistent inflation risks from labor market strength may lead to continued monetary tightening.

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