Business · Economy · 1 hr ago
Australia’s inflation rises to 4.3%, strengthening rate hike expectations
Australia’s annual inflation rose to 4.3% in September, up from 4% in August.
Prices rose 0.8% over the month, and underlying inflation, which excludes volatile prices, was 3.6% over the year.
The figures have increased expectations of another interest rate rise by the Reserve Bank of Australia, the country’s central bank.
Its official interest rate is already 4.6%, a 15-year high, and influences borrowing costs such as mortgage rates.
The bank has said the inflation outlook looks materially worse than it had forecast, while aiming to bring price growth toward its 2.5% target.
The bank’s board meets on Monday and will announce its decision on Tuesday, 3 November, along with updated economic forecasts.
Rising prices and higher borrowing costs are adding pressure on households as unemployment also rises.
Australia’s annual headline inflation rose to 4.3% in September, up from 4% in August.
The increase was larger than expected and strengthened expectations that the Reserve Bank of Australia will raise interest rates next week.
Underlying inflation, the RBA’s preferred measure, was 3.6% in the year to September.
The RBA’s cash rate is 4.6%, its highest level in 15 years.
The bank is due to announce its next monetary policy decision on 3 November.
- Who
- The Australian Bureau of Statistics reported the figures; the Reserve Bank of Australia sets interest rates.
- What
- Annual headline inflation rose to 4.3% in September. The rise strengthened expectations of another rate increase.
- When
- The figures were released on 28 October 2026.
- Where
- Australia.
- Why
- Inflation rose more than expected, increasing concern about price pressures and the prospect of another rate hike.
This story does not have two clearly opposing sides.
RBA deputy governor Andrew Hauser warned that the inflation outlook looked materially worse than the bank had forecast.
September annual headline inflation was reported at 4.3%, up from 4% in August.
The RBA is due to announce its next monetary policy decision.
- Annual headline inflation
- 4.3% in September
- Annual inflation in August
- 4%
- Monthly headline inflation
- 0.8% in September
- Underlying inflation
- 3.6% annual rate to September
- RBA cash rate
- 4.6%, highest level in 15 years
- Next RBA decision
- 3 November 2026
8 sources
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What people are saying
materially worse