Australia’s consumer price index (CPI) rose 3.8% in the 12 months to January 2026, according to the latest data from the Australian Bureau of Statistics (ABS).
“The 3.8% annual CPI inflation to January was unchanged from December,” Head of Prices Statistics Michelle Marquardt said in a media release.
However trimmed mean, or underlying, inflation rose to 3.4% in January from 3.3% in the 12 months to December 2025.
Economists were forecasting a fall in the headline rate to 3.7% and no change in the underlying rate of 3.3%.
The data, and particularly the trimmed mean rate, is closely watched by the Reserve Bank of Australia as it sets official interest rates, which were raised by 25 basis points to 3.85% earlier this month.
The largest contributor to annual inflation in January was housing, which rose 6.8%, followed by food and non-alcoholic beverages, up 3.1%, and recreation and culture, up 3.7%.
Electricity costs rose 32.2% in the 12 months to January, up from 21.5% to December, mostly because households used up the extended Commonwealth Energy Bill Relief Fund (EBRF) and various State Government rebates.
Excluding the impact of rebates, electricity prices rose 4.5%, partly due to annual price reviews by energy retailers in July.
