The Reserve Bank of Australia’s upcoming deliberations will heavily rely on the December quarter inflation report, set to be unveiled on January 28. This release comes just days before the central bank convenes for its board meeting on February 2-3.

Despite the fact that market services prices have not increased, they remain stubbornly high at approximately 3%, according to experts.

When questioned about the possibility of an interest rate hike, economist Holden indicated that it still remains a viable option.

Holden emphasized that the consumer price index (CPI) data from the December quarter will offer a more accurate forecast for the RBA’s February meeting.

Treasurer Jim Chalmers expressed satisfaction with the CPI figures, which outperformed economists’ expectations. The data provides a more optimistic economic outlook. Source: AAP / Lukas Coch

Treasurer Jim Chalmers welcomes the CPI data, which was better than economists predicted. Source: AAP / Lukas Coch

Treasurer Jim Chalmers said while he understood Australians were still feeling the pinch of competing costs, the CPI results were “very welcome and very encouraging”.

— With additional reporting by the Australian Associated Press.