Squiz Today Inflation strikes again, and a jellyfish influx in Victoria
Jan 28, 2026
Inflation is resurging with CPI and trimmed mean numbers rising and housing costs driving shelter inflation. Markets may face interest rate pressure as employment stays strong. Tensions escalate between Trump and Iran amid nuclear concerns. A mass influx of red lion’s mane jellyfish washes ashore in Victoria, prompting safety warnings and seasonal explanations.
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Inflation Is Broadening Beyond One-Off Items
- Australia's headline CPI rose 3.8% year-on-year in December, with the trimmed mean at 3.3% showing persistent underlying inflation.
- Housing (shelter) and food were key drivers, pushing readings above the RBA's 2–3% target and increasing odds of a rate rise.
Employment Data Raises Rate Hike Odds
- Stronger employment data combined with rising trimmed mean inflation has economists at major banks expecting a 0.25% RBA cash rate hike next week.
- BDO economist Anders Magnusson warned that the RBA would only lift rates if it sees lasting inflation dynamics, not a temporary spike.
Shelter Inflation Could Persist
- Capital Economics' Abhijit Surya said 'shelter inflation' from a hot housing market is likely to push inflation higher in coming months.
- That suggests inflation may be driven by domestic housing conditions rather than only transitory supply issues.