Australia’s annual inflation accelerated to 4.3% in September, putting pressure on the Reserve Bank of Australia (RBA) ahead of its next decision as it tries to bring price growth back within target.
The Australian Bureau of Statistics (ABS) said the annual rate had been 4.0% in August. September’s result was above the RBA’s 2% to 3% target.
In Asian trading Thursday, the Australian dollar was near 0.7055 U.S. dollars, FXStreet reported. The outlet said the September inflation result lifted expectations for an RBA rate increase.
On a month-to-month basis, the consumer price index advanced 0.8% before seasonal adjustment; adjusted data showed a 0.6% gain. Annual trimmed mean inflation reached 3.6%, up from a revised 3.5% in August.
The ABS said its housing CPI group rose 5.2% over the 12 months to September and made the largest contribution to the annual rate. Transport costs were up 8.7% year over year. Automotive fuel rose 9.4% in September alone and was 23.6% higher than a year earlier.
RBA Governor Michele Bullock told lawmakers Wednesday that developments since the bank’s August outlook had increased the risk of higher inflation. She cited domestic capacity pressures and international costs associated with the conflict in the Middle East, as well as energy prices and AI-related technologies. Bullock said higher interest rates can be difficult for households with mortgages. She said people on modest incomes with limited savings have less protection from sustained price rises.
The RBA’s cash rate target is 4.60%, after a 25-basis-point increase took effect Sept. 30.
The Federal Open Market Committee kept the U.S. federal funds target range at 3.75% to 4% Wednesday and said inflation remained elevated. The RBA is scheduled to announce its next decision at 10:30 p.m. EST Monday, Nov. 2 (03:30 UTC Tuesday, Nov. 3). The ABS has scheduled its October inflation release for Nov. 25. EconoTimes previously covered the Australian dollar’s position ahead of September CPI.
