Inflation Holds at 3.4% in January as Falling Food Costs Offer Relief, Prompting Rate Cut Hopes

Inflation remained at 2-year low of 3.4% in January, boosted by falling meat and seafood prices, raising hopes for earlier RBA rate cuts
Food and housing costs rose but government interventions helped limit electricity and rental increases
Weighting changes in latest CPI basket revision closer to pre-pandemic patterns, less goods and more services
Recreation category now third-largest after housing and food, transport weighting falls with overseas travel resurgence
Economists say January inflation drop reinforces view that RBA's rate hike cycle has likely ended, cuts possible late 2024