Australia’s Persistent Inflation Bolsters RBA Rate-Hike Bets

Australia’s monthly inflation came in stronger than expected in January, driven largely by housing costs and suggesting monetary policy settings may need to be tightened further.

Traders bolstered bets on a second interest-rate hike this year after official data showed the closely-watched trimmed mean gauge of consumer prices rose 3.4% last month from a year earlier. That exceeded economists estimate of 3.3% and meant the reading held above the top of the Reserve Bank’s 2-3% target band for a seventh straight month.