In brief
Australia’s consumer price index jumped to 4.3 % in September, the highest in six months, driven by significant hikes in housing and transport costs. The Reserve Bank of Australia may need to raise rates again. Inflation data was released ahead of RBA's November policy meeting.
In Canberra on 28 October, official data showed Australia’s annual inflation rate spiked to a six‑month high of 4.3 % in September, according to the Australian Bureau of Statistics.
The Consumer Price Index rose by 4.3 % in the 12 months to September, up from 4.0 % in August and the highest since March, while the trimmed mean underlying inflation climbed from 3.5 % to 3.6 %.
Key contributors to the rise were a 5.2 % year‑on‑year increase in housing prices and an 8.7 % jump in transport costs, largely driven by higher fuel prices.
"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," said Rachael McCririck, head of prices statistics at ABS.
The Australian Broadcasting Corporation noted that the probability of another interest‑rate hike at the RBA Monetary Policy Board’s November meeting rose to 79 %, up from 60 % after the earlier data release.
At a late‑September meeting, the RBA had already raised the cash‑rate target by 0.25 percentage points to a 15‑year high of 4.6 %, citing inflationary pressures from Middle‑East conflicts.
