The Australian Bureau of Statistics released its consumer inflation data on Wednesday. The consumer price inflation in Australia rose 0.4% in the fourth quarter, beating expectations for a 0.3% gain, after a 0.5% increase in the third quarter.

The quarterly inflation was mainly driven by higher prices for alcohol and tobacco, clothing and footwear, and recreation and culture.

On a yearly basis, Australia's consumer price inflation rose to 1.7% in the fourth quarter from 1.5% in the third quarter, exceeding expectations for an increase to 1.6%.

The annual inflation was mainly driven by higher prices for alcohol and tobacco, education and health care.

The trimmed mean consumer price index (CPI) (the Reserve Bank of Australia's (RBA) main indicator of inflation) remained unchanged at 2.1% year-on-year in the fourth quarter, in line with expectations.