New data from the Australian Bureau of Statistics (ABS) showed that the Consumer Price Index, or CPI, rose 1.9 per cent in the December 2022 quarter.
The figure largely beat market expectations, which had been pricing in more moderate growth.
It is the fourth consecutive quarter to show a rise in the cost living greater than anything seen since the introduction of the Goods and Services Tax (GST) in 2000.
The CPI is anecdotally used to measure the rate of inflation in Australia as it evaluates the change in cost of a standard basket of goods and services.
Today’s hotter-than-expected inflation figure now increases the likelihood that the Reserve Bank of Australia (RBA) will increase rates when it meets on the first Tuesday of February.