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Australian inflation jumps, adding to chances of an RBA interest rate hike

By John Hawkins, Head, Canberra School of Government, University of Canberra

Inflation has risen further above the Reserve Bank of Australia’s 2–3% target. There is now a very real prospect the Reserve Bank will feel it needs to increase interest rates at its meeting next week, with an announcement due on Tuesday afternoon.

Inflation rose 3.8% in the year to December, up from 3.4% in the year to November, according to the latest Australian Bureau of Statistics consumer price index (CPI) report.

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