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Hotter-than-expected inflation figures have eroded the chance of an interest rate pause next month and likely locked in higher repayments for mortgage holders.

Inflation rose 7.8 per cent annually in the December quarter - the highest increase to the consumer price index since 1990, according to national statistics bureau data.

Quarterly inflation growth picked up from 1.8 per cent in the past two quarters to 1.9 per cent, but fell short of the 2.1 per cent three-month surge in the March quarter.

Underlying inflation, which excludes large price rises and falls, lifted 6.9 per cent annually.

The December quarter print outstripped expectations of a 7.6 per cent rise in headline inflation but fell short of the Reserve Bank's own predictions of an eight per cent annual increase.

Treasurer Jim Chalmers said inflation was unacceptably high, but either at or close to its peak.

"Inflation was the defining challenge in our economy in 2022 and it will be a defining challenge in our economy in 2023," he told reporters in Canberra.

Dr Chalmers was not surprised to see electricity prices surging 8.6 per cent over the three months, and said the government's price caps and other interventions would keep a lid on power prices going forwards.

ABS head of prices statistics Michelle Marquardt said the unwinding of Western Australia's $400 electricity credit also pushed up the figure for the December quarter.

The festive season also contributed to stronger-than-expected quarterly inflation, with domestic holiday travel and accommodation surging 13.3 per cent and international holidaying up 7.6 per cent.

While the headline figure fell below the RBA's forecasts, the all-important trimmed mean inflation was well above the central bank's forecast of 6.5 per cent.

RBC Capital Markets' chief economist Su-Lin Ong said the inflation figures cast some uncertainty over core inflation's peak and the central bank did not expect such a strong result.

The Reserve Bank will also likely be worried about sticky services inflation, which lifted 5.5 per cent annually and has been accelerating on a quarterly basis.

Ms Ong said consumers were clearly still spending generously on leisure and travel, even when accounting for pent-up post-COVID demand and the Christmas rush.

"There may still be more demand ahead and we also continue to highlight the lagged impact on services inflation from higher wages and labour costs," she said.

However, higher mortgage rates, declining real wages and a softening job market should start to slow down consumer spending soon.

She said the hot CPI print likely sealed the case for a 25 basis point hike in February and improved the likelihood the same hike in March, leaving the Reserve Bank cash rate at 3.6 per cent.

While services inflation surged in the December quarter, goods inflation experienced little change from the third quarter as shipping costs normalised and supply-chain disruptions eased.

New dwelling costs are still elevated on an annual basis but quarterly growth eased, largely thanks to easing material cost pressures.

© AAP 2023

The Indigenous Australians minister has promised that tough new restrictions on takeaway alcohol sales are just the beginning of measures to combat surging youth crime in Alice Springs.

Linda Burney said the prime minister's meeting with territory leaders on Tuesday afternoon made important progress in strategies to curb anti-social behaviour.

But she said the government would consider all options and further alcohol restrictions were likely to be on the table.

"I find it very difficult to see a future where there are not further restrictions on alcohol," she told ABC TV on Wednesday.

Ms Burney also believed a successful referendum to establish an Indigenous voice to parliament would help communities, particularly in the Northern Territory, in the long-term.

"If the voice to parliament had been established previously, I don't think we would be where we are ... because we would have been getting practical advice from people representative of the community in relation to these social issues," she told ABC radio in a separate interview.

"It is wrong to think that the issue out here is just alcohol. There has been neglect for 10 years of small communities surrounding Alice Springs.

"This is not something we walked into yesterday, this has been something we've been working with and dealing with for a very long time."

Prime Minister Anthony Albanese and NT Chief Minister Natasha Files announced a three-month ban on the sale of takeaway alcohol in the region on Mondays and Tuesdays and reduced trading hours on other days, with a limit of one purchase per person each day.

Deputy Opposition leader Sussan Ley said the government had ignored community leaders and she called for tougher restrictions.

"Governments have to respond to the situations they face and this government has not responded sufficiently or strongly enough," she told reporters in Canberra.

Meanwhile, a long-term central Australian alcohol management plan will be developed to deal with the "complex issues" in the region, which include alcohol fuelled violence, unemployment and youth on the streets.

A central Australian regional controller was appointed to ensure all levels of government are working together to deliver services to the community.

The controller, Dorrelle Anderson, will also review opt-in alcohol restrictions that replaced expired Intervention-inspired liquor bans last year and consider if opt-out bans should be implemented.

Ms Anderson will provide an interim report to the government with further recommendations next week.

Northern Territory Labor senator Malarndirri McCarthy said she had "cautious optimism" about the impact of the measures.

"Over the next three to six months, it is absolutely critical that the people of Alice Springs see the change and feel the change and believe in the change," she told Nine's Today program.

Mr Albanese promised to spend millions of extra dollars to bolster security, including providing better street lighting, emergency accommodation for domestic violence victims and community services in Alice Springs and the region.

© AAP 2023

Dimension-hopping adventure Everything Everywhere All at Once has topped the list of films nominated for this year's Academy Awards as voters chose several crowd-pleasing hits to compete for the best picture prize.

Everything Everywhere, a science-fiction movie about an exasperated woman trying to finish her taxes, landed 11 nominations, including best picture and four acting nods.

Australian Cate Blanchett was nominated for best actress for her portrayal of a manipulative orchestra conductor in Tar, as was Michelle Yeoh for her starring role in Everything Everywhere.

Acting nominees also included Austin Butler for his portrayal of rock legend Elvis Presley, and Colin Farrell, who starred as a farmer obsessed with restoring a friendship in Banshees.

Other films vying for best picture include Avatar: The Way of Water, James Cameron's sequel that currently ranks as the sixth-highest grossing movie of all time.

Top Gun: Maverick and Elvis, two of the northern hemisphere summer's biggest blockbusters, also made the cut alongside Steven Spielberg's coming-of-age film The Fabelmans, The Bansehees of Inisherin, Tar, Triangle of Sadness, Women Talking and All Quiet on the Western Front.

Winners of the industry's highest honours will be unveiled at a March 12 ceremony hosted by comedian Jimmy Kimmel and aired live on Walt Disney Co's ABC network.

The Oscars and other entertainment awards shows have been struggling to attract TV viewers, particularly younger ones who spend time on TikTok and YouTube.

Last year's Academy Awards show, when Will Smith slapped presenter Chris Rock before winning best actor, drew about 15.4 million TV viewers, the second-smallest audience ever.

A range of nationalities is represented on the 2023 acting list, with nominations for performers from Australia, Cuba, Ireland and Malaysia - along with the United Kingdom and the United States.

Ireland is particularly well-represented and accounts for a quarter of all 20 acting nominations - with nods for Kerry Condon, Farrell, Brendan Gleeson and Barry Keoghan (The Banshees Of Inisherin) plus Paul Mescal (in the coming-of-age drama Aftersun).

Winners will be voted on by the roughly 10,000 actors, producers, directors and film craftspeople who make up the Academy of Motion Picture Arts and Sciences.

with PA

© RAW 2023