Inflation has picked up despite the continued slide in petrol prices, suggesting the Reserve Bank may hold fire on cutting interest rates when the board meets on Tuesday.
Inflation rose 0.1 per cent in January for an annual rate of 1.5 per cent, unchanged from December, according to the TD Securities/Melbourne Institute monthly inflation gauge on Monday.
But the underlying inflation measure, which strips out volatile price movements and is closely watched by the RBA, rose by 0.3 per cent in January, for an annual rate of 2.3 per cent, which sits within the central bank's two-to-three per cent target band.
