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By Rodrigo Santos Andrade
Inflation surge sparks rate hike fears | 7NEWS
visibility comment0 event January 28, 2026 timer 02:17
Australia’s monthly inflation rate has climbed to 3.8 per cent in the 12 months to December, with underlying inflation reaching 3.3 per cent, pushing above the Reserve Bank’s target band of 2 to 3 per cent. The figures have prompted economists to predict an interest rate rise at the Reserve Bank’s next meeting, which would be the first cash rate hike in more than two years. Treasurer Jim Chalmers and Shadow Treasurer Ted O’Brien have clashed over whether government or private spending is driving the inflation increase.
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