Australia’s Annual Inflation Rises to 4.3% in September; Weighted Median Reaches 3.6%
Key Facts
Australia’s consumer price index rose 4.3% in the 12 months to September 2026, compared with an annual increase of 4.0% to August, according to the Australian Bureau of Statistics. On a monthly basis, the index rose 0.8% in original terms and 0.6% after seasonal adjustment. On the underlying inflation measure, the weighted median rose 3.6% year on year in September, after reaching 3.5% in August following a downward revision from 3.6%. The data put accelerating headline prices alongside an underlying measure that remained at 3.6%, as the Reserve Bank of Australia’s Monetary Policy Board meeting on November 2 and 3 approaches. The bureau’s statement does not include the market forecasts cited in the previous draft.
A comparison of the two measures shows that the annual headline rate’s rise from 4.0% to 4.3% coincided with an annual weighted median reading of 3.6%, versus 3.5% in August after revision. The seasonally adjusted consumer price index also posted a monthly increase of 0.6% and an annual rise of 4.4%. The weighted median rose 0.3% during the month and 3.6% year on year. This gives September’s reading more than one dimension: monthly price changes, the headline index’s annual trajectory and an underlying measure that excludes some volatility. The August figure was revised down from 3.6% to 3.5% because of changes in seasonal factors, according to the bureau.
Fuel stood out among the drivers of the monthly increase, with automotive fuel prices rising 9.4% in September, which the bureau attributed to higher global oil prices. The rise coincided with a 0.8% increase in the headline index in original terms during the month, or 0.6% after seasonal adjustment. Over the year, the housing group recorded a 5.2% price increase, while prices in the recreation and culture group rose 4.5%. These figures show that September’s increase covered energy-related components as well as other parts of the consumer basket. The monthly fuel reading was part of the bureau’s September index data.
Among services, prices for domestic holiday travel and accommodation rose 8.0% during September. The bureau said demand for travel was high during the school holidays and major sporting events. This came alongside the rise in fuel prices, while the recreation and culture group recorded an annual increase of 4.5%. In housing, the annual increase was 5.2%, according to bureau data. These readings combine monthly changes in travel and fuel with annual increases in major spending groups.
September’s data follow the Reserve Bank of Australia’s September 29 decision, when its board raised the cash rate by 25 basis points to 4.60%. A Reuters report published by MarketScreener described the level as the highest in 15 years, noting that persistent inflation had prompted the bank to raise rates. The annual headline index reading of 4.3% follows 4.0% in August, while the weighted median reached 3.6% year on year in September. The next Monetary Policy Board meeting will be held on November 2 and 3, with the decision due on the second day, according to the central bank’s schedule. September’s reading therefore provides the latest available price figures ahead of the meeting.
The statistics bureau has scheduled publication of the October 2026 consumer price index for November 25 at 11:30 a.m. Australian Eastern Daylight Time. The release will follow the monetary policy meeting scheduled for November 2 and 3. Between the two dates, September’s reading will be the latest among the figures cited here for the headline index and weighted median. The headline index rose 4.3% year on year in September, while the weighted median was 3.6% year on year and 0.3% month on month. The November release will allow the price trajectory to be compared after the October reading is published.