Inflation Steady, No Decline Expected Soon | Evening News Feb 25, 2026
The inflation rate in Australia has held steady at 3.8% for January 2026, matching the previous month’s figure. Meanwhile, the trimmed mean inflation rate, which is favored by the Reserve Bank, saw a slight increase from 3.3% to 3.4%. Both metrics remain significantly above the central bank’s target range of 2% to 3%.
Major Contributors to Inflation
Housing costs have emerged as the primary contributor to inflation, experiencing a rise of 6.8% in January. Additionally, electricity prices surged by 32% over the year leading up to January.
Government Response to Inflation Trends
Treasurer Jim Chalmers indicated that inflation is unlikely to decline in the upcoming months. He highlighted that the government anticipates continued high inflation figures, particularly with the expiration of energy rebates affecting household expenses.
- Inflation Rate (January 2026): 3.8%
- Trimmed Mean Inflation Rate: 3.4%
- Housing Cost Increase: 6.8%
- Electricity Price Increase: 32% (yearly)
Chalmers noted, “We expected these numbers and the continuation of inflationary pressures for the first half of the year.” His assessment is shared by Shadow Treasurer Tim Wilson, who criticized government energy subsidies as misleading. Wilson claimed that the true impact of inflation is now being felt by residents after the subsidies lapse.
Political Reactions
In the political arena, Opposition Leader Angus Taylor reiterated calls for stricter laws targeting individuals connected to ISIS. He characterized these individuals as supporters of a dangerous ideology, advocating for legislation that could lead to ten-year prison sentences for those who assist ISIS-linked persons returning to Australia.
Legislative Actions and Social Issues
New South Wales Premier Chris Minns has indicated potential legislative changes to enhance penalties for hate crimes against the LGBTQ+ community. His comments follow troubling reports of violence targeting gay and bisexual teens inspired by extremist ideologies.
Furthermore, a coalition of Aboriginal leaders and advocacy groups is urging the federal government to reconsider the appointment of the Northern Territory’s new administrator, David Connolly, citing his controversial social media history.
Sports Update
In sports news, Craig Tiley, the director of the Australian Open, announced his departure to become CEO of the United States Tennis Association. Tiley has led the Australian Open since 2006 and leaves with confidence in the stability and growth of Tennis Australia.
This steady inflation rate and the related economic challenges pose significant implications for Australian households, as discussions around energy costs and government policy evolve.
