Australia’s Inflation Now 3.8 Percent, Power Prices Jump 21 Percent Over the Year Australia’s inflation rate increased to 3.8% in the year to December, exceeding the RBA’s target range. This rise, driven significantly by housing and a substantial jump in electricity prices, intensifies pressure on household budgets. The data increases the likelihood of the Reserve Bank of Australia raising interest rates at their upcoming meeting.

• Australia’s inflation rate rose to 3.8% in the year to December, up from 3.4% in November.
• The current inflation rate is above the RBA’s target range of 2-3%.
• Housing costs increased by 5.5% over the past year.
• Electricity prices saw a significant rise of 21.5% over the year.
• The increase in inflation puts pressure on household budgets and may lead to an RBA interest rate hike.