Reserve Bank could hike cash rate twice in 2026 as Australia’s inflation stays stubbornly high

End of government subsidies drives electricity costs up by 19% in the month and leaves power bills nearly a third higher than they were a year earlier

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The Reserve Bank is more likely to hike rates again, and potentially twice before the end of the year, after new figures revealed inflationary pressures showed no signs of easing in 2026.

Annual inflation stayed at a high 3.8% in January, as the end of government subsidies drove electricity costs up by 19% in the month and left power bills nearly a third higher than they were a year earlier.