02.02.202601:37:54UTC+00Australia Inflation Gauge Cools Ahead of RBA Decision

Australia’s Monthly Inflation Gauge, produced by the Melbourne Institute, saw a modest increase of 0.2% in January 2026 compared to the previous month. This represents a significant slowdown from December's two-year peak of 1%, marking the slowest increase since August. This data comes just before the Reserve Bank's first policy meeting of 2026, following its decision to maintain the cash rate at 3.6% for the third consecutive meeting in December. The moderation in inflation reflects the effects of previous monetary tightening, which is starting to reduce demand-driven pressures. However, policymakers are expected to remain vigilant, as underlying inflation remains above the target, and the labor market continues to be relatively tight. The central bank is anticipated to continue its restrictive policy approach, emphasizing its reliance on data in the coming months.