Headline inflation remained at 2.5 per cent in January, but core inflation picked up slightly

Headline inflation remained steady in January, at 2.5 per cent, but underlying inflation picked up slightly.

According to the Australian Bureau of Statistics (ABS), the latest monthly Consumer Price Index (CPI) indicator suggests the speed with which headline prices are rising had not changed between December and January.

However, annual "trimmed mean" inflation — which is the Reserve Bank's preferred measure of underlying inflation — was 2.8 per cent in January, up slightly from 2.7 per cent in December.

The news comes after the RBA cut interest rates last week by 25 basis points, which lowered the cash rate target to 4.1 per cent.