Australia in January 2026: the most important developments in economy
Australia's economy in January 2026 was marked above all by the effort to secure critical minerals. On 12 January Australia's Critical Minerals Reserve was reported to be set to focus first on antimony, gallium and rare earths. On 21 January a US uranium company was reported set to acquire an Australian rare earths miner, in what was described as a global race for critical minerals, and Pakistan and Australia were said to be exploring a partnership in the mining sector. Rio Tinto reported higher copper production and slightly lower iron ore output for the past year.
A second theme was inflation and interest rates. On 19 January the International Monetary Fund described Australia's battle with inflation as "drawn-out", and the Australian sharemarket opened lower. The OECD called on Australia to raise the GST and increase the supply of affordable housing to address a growing budget deficit. On 20 January a "sell America" trade and threats from US President Donald Trump roiled global markets, with gold prices surging and the Australian sharemarket falling. By 28 January, with inflation well above the Reserve Bank's target, a rate hike was seen as almost certain. Treasurer Jim Chalmers said inflation is not his fault. The ASX fell after the inflation data was released, and the Australian dollar retreated from a three-year high.
China featured in several items. On 28 January China's Foreign Ministry said the legitimate rights of Chinese companies should be fully protected, responding to reports that a Chinese envoy had warned of retaliation if Australia were to force the sale of the Chinese-leased Darwin Port. The ACT government is investigating Chinese-made buses following a security warning about potential "kill switches". A Chinese importer bought Canadian canola, a deal reported to have dented hopes for Australian exports in that market.
Property and energy made up the remainder. Perth's median house price passed one million dollars, and Sydney house rents reached a record $800 a week. Origin announced an extension to the operating life of Australia's largest coal-fired power station, and the Environmental Protection Authority recommended the Valhalla gas project for approval. Victoria's Latrobe Valley, a traditional coal region, is set to become the site of a $10 billion data centre.
by WorldBrief & Maksim Micheliov | AI-generated summary
Click a day in the chart above for that day's brief.