In brief
In Canberra on October 28, Xinhua reported that Australia’s annual inflation rate spiked to 4.3% in September, its highest level since March. The rise was driven by sharp increases in housing and transport costs, with banks and the Reserve Bank of Australia reassessing the need for additional monetary tightening. The data may influence the RBA’s upcoming decision on interest rates in early November.
In Canberra on October 28, Xinhua released data showing that Australia’s annual inflation rate rose to a six‑month high of 4.3 percent in September, up from 4.0 percent in August.
The Australian Bureau of Statistics noted the consumer price index climbed 4.3 percent over the 12 months to September, the highest figure since March.
Inflation Data Details
ABS officials highlighted that the annual trimmed mean—an underlying inflation metric favored by the Reserve Bank of Australia—worsened from 3.5 percent in August to 3.6 percent in September.
Rachael McCririck, head of prices statistics at the ABS, said a 5.2 percent rise in housing prices year‑on‑year was the biggest contributor to the headline figure, followed by transport prices, which advanced by 8.7 percent due to higher fuel costs.
"On a monthly basis, automotive fuel prices rose 9.4 percent in September, compared to a rise of 14.8 percent in August. This was driven by higher world oil prices,"
McCririck added that the transport inflation spike reflected rising global fuel prices.
Economists at the Commonwealth Bank of Australia had forecast headline inflation of 4.2 percent in September, slightly below the released figure.
The data were issued ahead of the RBA’s Monetary Policy Board meeting, scheduled for early November to decide on interest rates.
At its previous meeting in late September, the board unanimously raised the cash rate target by 0.25 percentage points for the fourth time in 2026, lifting it to a 15‑year high of 4.6 percent and citing inflationary pressure from Middle‑East conflicts.
The Australian Broadcasting Corporation reported that the probability of another rate hike in November grew from 60 percent to 79 percent after the latest inflation release.
