Australia's inflation steady at 3.4%

Australia's inflation rate remained steady at 3.4% in the year to January, data revealed on Wednesday.

According to figures released by the Australian Bureau of Statistics, consumer prices rose 3.4% in the 12 months to January, the same annual rate as the 12 months to December 2023 and the equal-lowest annual figure since November 2021.

The Australian Broadcasting Corporation reported that economists had generally forecast inflation would rise to 3.6% in January.

The statistics bureau identified a 4.6% rise in housing costs between January 2023 and January 2024 and a 4.4% rise in food and non-alcoholic beverage prices in the same period as the main drivers of inflation.

"Annual inflation remains elevated for food, apart from fresh food categories. Meat and seafood and fruit and vegetables, for example, saw lower or negative annual inflation," Michelle Marquardt, head of price statistics at the bureau, said in a statement.

Alcohol and tobacco prices grew 6.7% and the cost of insurance and financial services increased 8.2% in the 12 months to January.

Those increases were partially offset by a 7.1% fall in holiday travel and accommodation costs.

The price of electricity increased 0.8%, but Marquardt said that if not for a government rebate scheme that started in July 2023 it would have increased 15.3% in the year to January.