MNI BRIEF: Aussie Trimmed Mean Inflation 3.4% Over January

Trimmed mean inflation rose 10 basis points in January to 3.4% y/y, 10bp above expectations, while headline CPI came in at 3.8%, flat on the month but 10bp higher than forecasted, data released Wednesday by the Australian Bureau of Statistics showed.

On a monthly basis, trimmed mean inflation also increased 10bp to 0.3%.

Annual housing inflation accelerated to 6.8% in the year to January from 5.5% in December, reflecting higher costs for electricity, new dwellings and rents. Electricity prices rose 32.2% over the year to January, up from 21.5% in December. The increase largely reflects households exhausting support under the extended Commonwealth Energy Bill Relief Fund and various state government rebates.

Excluding the impact of Commonwealth and state electricity rebates, power prices increased 4.5% over the year to January, reflecting annual price reviews by energy retailers in July 2025.

The Reserve Bank of Australia expects trimmed mean inflation, its preferred gauge, to rise to 3.7% by Q2 before easing to 3.2% by year-end. (See MNI RBA WATCH: Bullock Says Policy Too Loose, Hikes 25BP)