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Australia's inflation rose to 3.8% in December 2025, prompting expectations of a rate hike in early 2026.
Inflation in Australia exceeded projections and increased pressure on the Reserve Bank of Australia to raise interest rates, rising to 3.8% in December 2025 from 3.4% in November.
Expectations of a rate increase in early 2026 have been heightened by the increase, which was caused by rising housing, electricity, and food costs.
Market analysts predict a 75% chance of a 0.25 percentage point increase, so the RBA must strike a careful balance between promoting economic growth and containing inflation.
The central bank is anticipated to prioritize price stability based on incoming economic data, despite the warnings of some, such as ACOSS, that additional hikes would exacerbate financial hardship.
La inflación de Australia se elevó al 3,8% en diciembre de 2025, lo que provocó expectativas de un aumento de la tasa a principios de 2026.