Core inflation in Australia for January came in stronger than anticipated, signaling that further monetary policy tightening may be required, which pushed the Australian dollar higher. Data released on Wednesday by the Australian Bureau of Statistics showed that the trimmed mean consumer price index, which excludes volatile items, rose 3.4% year-on-year last month. This figure surpassed the 3.3% increase forecast by economists. The Reserve Bank of Australia aims to keep inflation at the midpoint of its 2% to 3% target band. Compared to the previous month, this key inflation gauge increased by 0.3%, accelerating from the 0.2% rise recorded in December. Following the data release, the Australian dollar climbed 0.2%, and yields on policy-sensitive three-year government bonds also moved higher, as traders increased bets on another interest rate hike from the central bank. Gains in the stock market narrowed.