In January, the inflation rate in Australia remained at 3.8%. The Australian dollar is expected to continue strengthening.

The Australian Bureau of Statistics announced on the 25th that in January 2026, the country's overall Consumer Price Index (CPI) increased by 3.8% compared to the same period last year, which was the same as in December, higher than the market's previous expectation of 3.7%. The trimmed mean inflation rate, which is an indicator of underlying inflation, rose from 3.3% in the previous month to 3.4%, exceeding the market's previous expectation of 3.3%, and continued to be higher than the inflation target range of 2%-3% set by the Reserve Bank of Australia. After the inflation data was released, the Australian dollar against the US dollar jumped by about 0.2% to 0.7071. Analysts believe that the high inflation rate may lead the Reserve Bank of Australia to maintain a hawkish stance, pushing the Australian dollar exchange rate to further strengthen.