Australia’s inflation holds at two-year low in Jan

Australian consumer price inflation held at a two-year low in January, dashing forecasts for a tick higher and reinforcing market expectations interest rates would not need to increase any further. There has been limited market reaction as the January release is heavily weighted toward goods prices that have been falling faster than services, and thus suggest some scope for a downside surprise. Data from the Australian Bureau of Statistics on Wednesday showed its monthly consumer price index (CPI) rose at an annual pace of 3.4% in January, unchanged from December and under market forecasts of 3.6%.