# Australia's core inflation hits 16-month high, raises bets for May rate hike | Reuters

> Australian CPI rose 0.4% month on month in January and 3.8% year on year, with core inflation rising to 3.4% from 3.3%, the highest in over a year. Investors raised bets on a Reserve Bank of Australia rate hike in May to about 80%.

- Date: 2026-02-25 · published 2026-02-25T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/20851-australia-s-core-inflation-hits-16-month-high-raises-bets-for-may-rate-hike
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Higher Australian rates tend to strengthen the AUD, which can lift the currency's relative pull on Australian grain and oilseed export competitiveness and shifts the USD-denominated cost base for feed importers in the region.

## Read by commodity

- AUDUSD: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/world/asia-pacific/australia-consumer-prices-rise-04-january-core-inflation-picks-up-2026-02-25/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.