Australia’s annual inflation rises to 4.3% as September index gains 0.8%

Key Facts

Australia’s consumer price index rose 4.3% in the twelve months to September 2026, compared with an annual increase of 4.0% to August, according to data published by the Australian Bureau of Statistics on October 28. On a monthly basis, the index rose 0.8% before seasonal adjustment and 0.6% after adjustment. The data also showed that the annual trimmed mean, a measure of underlying inflation, was 3.6% in September. This followed a revision to the August reading to 3.5% from 3.6%. The Australian dollar stood at 0.70316 U.S. dollars at the close on October 28, according to EL7 data.

The figures highlight differences in inflation measures and periods: the 4.3% increase measures the annual change to September, while the monthly increase reflects price movements during September alone. The annual trimmed mean rose to 3.6% from the revised August reading of 3.5%. On a quarterly basis, the consumer price index rose 1.3% in the September quarter, after 0.6% in the June quarter, according to data reported by Reuters. Annual inflation in the September quarter was 3.9%. The trimmed mean also rose 1.0% during the quarter, taking its annual rate to 3.7%, the same source said; this quarterly reading differs from the annual trimmed mean for September, which was 3.6%.

Housing was the largest contributor to annual inflation in September, with prices rising 5.2%; the Bureau of Statistics attributed this to new dwelling and electricity costs. Transport was the second-largest contributor, with prices up 8.7% year on year due to higher fuel prices. Automotive fuel prices rose 9.4% in September, compared with an increase of 14.8% in August, and the bureau said rising global oil prices drove the increase. The Reserve Bank of Australia said in its policy statement that higher fuel costs had partly passed through to prices of other goods and services. This places housing and energy components among the factors cited by official bodies in explaining price pressures.

The Reserve Bank of Australia raised its target interest rate by 25 basis points to 4.60% at its September meeting, saying inflation remained elevated and some upside risks had materialised. Governor Michele Bullock warned lawmakers that inflation was too high and said policymakers would discuss at their next meeting whether four rate increases during the year were enough to curb it, Reuters reported. The next interest rate update is scheduled for November 3 at 2:30 p.m., according to the bank. The bank also said it would continue monitoring data and assessing the outlook and risks. The next consumer price index data, for October, will be released on November 25, according to the Australian Bureau of Statistics.