Australia CPI inflation rises more than expected in Q4, more RBA action likely

By Ambar Warrick

Investing.com--Australian consumer price index inflation grew more than in December, data showed on Wednesday, pointing to increased pressure on the economy and also giving the Reserve Bank more impetus to keep raising interest rates.

CPI inflation grew 1.9% in the three months to December 31 from the prior quarter, data from the Australian Bureau of Statistics (ABS) showed. The reading was higher than expectations of 1.6%, as well as the prior quarters reading of 1.8%.

On an annualized basis, CPI inflation rose 7.8%, more than estimates for a rise of 7.5% and the prior quarters reading of 7.3%. The reading was also at its highest pace since 1990.