Official data and major Australian bank forecasts show core inflation exceeding the Reserve Bank of Australia's projections, with quarterly trimmed mean inflation hitting 1.0% against the RBA's 0.8% estimate. The year-on-year trimmed mean CPI rose to 3.7% in September, while quarterly CPI jumped to 1.3% from the previous 0.6%. These figures have caused a split among the 'big four' banks regarding the next rate decision, with ANZ and Westpac now expecting a hike in November.
A 9.4% monthly rise in fuel prices pushed prices higher, with the central bank meeting on November 2 and 3 ahead of the October reading on November 25.
Read the full storyAnnual trimmed mean inflation rose to 3.6%, ahead of the central bank meeting scheduled for November 2–3 to review the interest rate outlook.
CommBank and Westpac expect trimmed mean inflation to rise between 0.9% and 1.0% for the quarter, while Andrew Hauser said the reading is likely to exceed the central bank’s August assumptions.