Australia’s inflation rate rises to 4.3%, fuelling fears of fifth interest rate hike this year
CPI release comes ahead of Reserve Bank decision next week as the Middle East conflict intensifies the cost of living crisis Follow our Australian politics live blog for latest updates Get our daily political email , free app or daily news podcast Australia’s headline inflation rate has accelerated to 4.3%, with a key gauge that strips out volatile prices also elevated, sharpening expectations of…
Australia's headline inflation rate has surged to 4.3% in September, with a more refined measure of consumer prices also on the rise, sparking concerns about another interest rate increase this year. The Reserve Bank of Australia (RBA) is closely monitoring the situation, as tensions in the Middle East continue to fuel the cost of living crisis.
The bank's preferred inflation gauge, underlying inflation, stood at 3.6% for the same period. RBA officials have hinted that a further rate hike may be necessary to bring price growth back in line with the 2.5% target. Deputy Governor Andrew Hauser described the inflation figures as "too high" and warned of a "nightmare" scenario where longer-term inflation expectations climb, complicating efforts to restore price stability.
The cash rate currently sits at 4.6%, the highest level in 15 years. Meanwhile, the costs of daily essentials are soaring, with transport prices up 8.7% and food prices climbing 3.2% in a year. Housing costs are also on the rise, contributing significantly to the overall inflation rate. This has heightened political discontent, with voters expressing frustration over the mounting cost of living pressures.
Written by urgent.news from The Guardian Australia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
