Data from the National Statistics Office released on Wednesday morning in Australia indicated that the annual inflation rate of the Consumer Price Index (CPI) in the country increased in January at the same pace as the index grew in December last year.
According to the data, the Consumer Price Index in Australia recorded an annual growth of 2.5% during January, which was lower than market expectations that indicated an acceleration of the annual inflation rate to 2.6%, after Australia had recorded a 2.5% increase in the Consumer Price Index in December.
The inflation data in Australia is a key measure of consumer prices and the health of the economy, significantly impacting market movements and the currency. Rising prices will prompt the Reserve Bank of Australia to increase interest rates to contain inflation, which will strongly reflect on movements in the Australian dollar.
According to official statistics, the decline in electricity prices by 11.5% contributed to limiting the annual increase in the inflation rate within Australia in January.
The increase in inflation in Australia, reaching 2.5%, was driven by price rises in several sectors, most notably: non-alcoholic beverages (3.3%), housing (2.1%), and alcohol and tobacco prices (6.4%).
