The first round of inflation data for the year has arrived, which is likely to increase pressure on the Reserve Bank to lift interest rates further.
WHAT DID THE DATA REVEAL?
* Headline inflation remained steady for January at 3.8 per cent
* Trimmed mean inflation had a slight rise from 3.3 to 3.4 per cent in the year to January
* The Reserve Bank prefers the trimmed mean as a measure of inflation due to it removing volatile price swings
WHAT WERE THE BIG PRICE MOVERS?
* Housing was the largest contributor by sector to inflation, rising 6.8 per cent in January
* Food and non-alcoholic beverages increased by 3.1 per cent while recreation and culture went up by 3.7 per cent
* Electricity costs rose 32.2 per cent in the 12 months to January, compared to a rise of 21.5 per cent in the year to December
* That increase was due to the end of state and federal rebates for power bills
* The Australian Bureau of Statistics said electricity prices only rose 4.5 per cent in the year to January if the impacts of the government rebates were excluded
Australian Associated Press