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Inflation

Australia inflation hits 33-year high in Q4; more rate hikes loom

Rising travel, electricity costs makes monetary tightening more likely

Travel was one of the main cost culprits in pushing up inflation in the December quarter, with prices for domestic holiday prices up 13% and overseas jaunts rising almost 8%.   © Reuters

SYDNEY (Reuters) -- Australian inflation shot to a 33-year high last quarter as the cost of travel and electricity jumped, a shock result that adds to the case for the country's central bank to raise interest rates again next month.

Investors sharply narrowed the odds on the Reserve Bank of Australia (RBA) lifting its cash rate by a quarter point to 3.35% when it meets on Feb. 7, sending the local dollar up to a five-month high of $0.7085.

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