Australia inflation meets expectations at 3.6%, reaching a six-quarter high

Core Insights - Australia's inflation rate reached 3.6% in Q4 2025, marking the highest level in six quarters, which suggests limited potential for interest rate cuts this year [1] - The Q4 inflation figure increased from 3.2% in Q3, aligning with economists' expectations [1] - On a quarterly basis, inflation rose by 0.6%, matching forecasts and showing a decrease from the previous quarter's 1.3% [2] Inflation Details - Year-on-year inflation for December was reported at 3.8%, surpassing the expected 3.55% [2] - The Australian Bureau of Statistics identified housing as the primary contributor to the December inflation increase, with prices rising by 5.5% [2] - Additional contributors to price increases included food and non-alcoholic beverages, as well as recreation and culture [2]