In the latest figures released this morning by the Australian Bureau of Statistics (ABS), inflation stayed at 2.5 per cent for the 12 months to January, bettering market expectations of a marginal increase to 2.6 per cent.
Food (up 3.3 per cent), housing (up 2.1 per cent) and alcohol and tobacco (up 6.4 per cent) were the main drivers of price increases, particularly fresh fruit, which the ABS found costs 12.3 per cent more than this time last year.
On the other hand, electricity prices are down 11.5 per cent over the last year, and the cost of fuel has fallen by 1.9 per cent.
Before the release of today’s data, the market had been pricing in a 19 per cent chance of a cut when the RBA board meets next in
