Australia's Core Inflation Hits 16-Month High, May Rate Hike Odds Jump to 80%

• Australia's core inflation reached a 16-month high, increasing pressure on the Reserve Bank of Australia (RBA).
• Market expectations for a May interest rate hike surged to 80% following the latest data.
• The monthly Consumer Price Index (CPI) rose 0.4% in January, exceeding forecasts, with the annual rate at 3.8%.
• The RBA's preferred trimmed mean measure climbed to 3.4% annually, remaining above its 2-3% target for the seventh consecutive month.
• Persistent strength in domestic price components, including a 32.2% surge in electricity prices, contributes to inflationary pressures.