Australia’s annual inflation rate accelerated in September, reaching 4.3%, as policymakers weigh price pressures against economic activity and jobs before the Reserve Bank of Australia (RBA)’s next rate decision.
The Australian Bureau of Statistics (ABS) said annual inflation rose from 4.0% in August. Trimmed-mean inflation, which was revised to 3.5% for August, reached 3.6% in September. Automotive fuel rose 9.4% during the month and cost 23.6% more than a year earlier; the ABS linked the monthly increase to global oil prices.
The Guardian cited an Essential poll in which overseas events, including the global oil shock, were selected by 24% of respondents, while 19% cited supermarket price gouging. Government spending ranked first, selected by nearly one-third as a cause of cost-of-living pressure, the outlet reported.
The Guardian also reported that Treasurer Jim Chalmers attributed price pressure to the worsening conflict in the Middle East. In its analysis, the outlet described the conflict as U.S. President Donald Trump’s war on Iran.
The RBA has raised its cash-rate target four times in 2026. Its September increase took the target to 4.60%. The bank has said it must weigh efforts to reduce inflation against the effects of tighter policy on economic activity and employment. The Guardian’s analysis judged another increase highly likely and said mortgage holders would bear the cost. It also said a further move to 4.85% would bring the cash rate to its highest level since the global financial crisis; that figure is the outlet’s projection, not an announced RBA decision.
EconoTimes previously outlined the stakes in its preview of Australia’s September inflation test. The RBA’s next rate decision is scheduled for Tuesday, Nov. 3, and the ABS lists its next inflation update for Nov. 25.
