Inflation remains flat at 3.4% in January, fuelling hopes of interest rate cut

The Reserve Bank is betting on CPI returning to within its target range of 2%-3% by next year

Inflation remained flat in January at a two-year low, stoking hopes the Reserve Bank may bring forward interest rate cuts.

The consumer price index in January was 3.4%, the Australian Bureau of Statistics said on Wednesday. Economists predicted CPI would increase to 3.6% from December’s 3.4%.