The ASX Today: XJO fairly resilient against 3.8% inflation scare; US Fed decision tonight a Wall Street risk

Economic Indicators - Australia's CPI inflation rate for the 12 months to December CY2025 is reported at 3.8%, exceeding expectations, while the trimmed mean or core inflation stands at 3.3%, indicating persistent inflation outside the target band [1] Market Reactions - The ASX200 index experienced a minor decline of two-tenths of a percent following the inflation news, suggesting that the market may have already priced in the likelihood of an interest rate hike by the Reserve Bank of Australia (RBA) [2][3] - BHP reached a record share price of $50.80 intraday, reflecting a broader commodity rally, while Commonwealth Bank saw a modest increase of one-tenth [3][6] Sector Performance - Coles experienced a nearly 2% decline after initial selling pressure linked to inflation data, while Woolworths showed similar trends [6] - BENZ Mining Corp emerged as the best performer intraday, with a 20% increase attributed to a gold discovery [6] Future Outlook - The ASX is expected to remain resilient in the short term despite the CPI data, with investors awaiting the U.S. Federal Reserve's upcoming meeting, which may influence market sentiment [4][5]