Consumer prices in Australia rose more than expected in January, raising the prospect of further monetary policy tightening. According to the Australian Bureau of Statistics, the annual consumer price index increased by 3.8%, while analysts had forecast a 3.7% increase. This figure remained unchanged from December, but still exceeded market expectations.

Core inflation, calculated using the trimmed mean method, rose to 3.4% year-on-year, compared to the expected 3.3%. This figure was again above the Reserve Bank of Australia's target range of 2-3%.

The housing sector contributed the most to the price increase. Energy costs increased sharply by more than 30% following the end of several government subsidy programs. Rents and house prices also continued to rise, supporting overall inflation.

Given persistent price pressures, the regulator may consider further interest rate hikes. In January, the RBA already raised its key interest rate by 25 basis points and warned of further measures if inflation does not begin to decline sustainably. The central bank estimates that it could take until 2028 for inflation to return to its target level.