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Australia's strong job market in early 2026 fuels inflation concerns, raising chances of further interest rate hikes.
Australia's jobs market remained strong in early 2026, with employers adding thousands of positions, according to Commonwealth Bank's report.
Annual wage growth dipped slightly to 3.1% in December from 3.2% in November but remains elevated.
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.
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.
El fuerte mercado laboral de Australia a principios de 2026 alimenta las preocupaciones de inflación, lo que aumenta las posibilidades de nuevos aumentos en las tasas de interés.