The Australian dollar jumped from US71.5 cents to US72.08 cents just before the figures came out. It had since dropped back down to US71.7 cents.

Wednesday’s inflation result comes in an environment of deteriorating business conditions around Australia, which suffered their biggest monthly fall since the GFC on Tuesday, according to National Australia Bank.

The CPI release is the last economic indicator the Reserve Bank would see before it meets on Tuesday next week and releases its statement on monetary policy.

Domestic holiday travel and accommodation expenses helped lift inflation over the December 2018 quarter, according to the ABS. Tanya Lake

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