Australia · Central banks · Inflation & data · Source: Australian Bureau of Statistics

Australia's annual inflation rises to 4.3% in September on fuel and housing

Published 28 Oct 2026, 01:30 CET

Editor: Hedal Kolanyi / AI-assisted

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Summary: Australia's consumer prices rose 4.3% in the year to September 2026, up from 4.0% in August, according to the Australian Bureau of Statistics (ABS). Underlying inflation also edged up, a few days before the Reserve Bank of Australia's next policy decision.

What happened

The ABS published its monthly CPI for September on 28 October 2026, including quarterly figures for the September quarter. Key points:

Headline CPI: up 4.3% over 12 months, from 4.0% in August. Prices rose 0.8% in September alone.
Trimmed mean (an underlying measure that excludes the largest price moves): 3.6%, up from a revised 3.5% in August.
Quarterly data: the CPI rose 1.3% in the September quarter, and the trimmed mean (pre-October 2025 basis) rose 1.0%.

The ABS head of price statistics, Rachael McCririck, said: "Housing was the largest contributor to annual inflation in September, rising by 5.2 per cent." She said this reflected higher costs for both new dwellings and electricity. Transport was the second-largest contributor, up 8.7%, because of fuel. Automotive fuel prices rose 9.4% in September after a 14.8% rise in August, which the ABS attributed to higher world oil prices.

Background

The Reserve Bank of Australia raised its cash rate target by 25 basis points to 4.60% on 29 September. It said global energy prices were much higher than assumed in its August forecasts and that it would raise rates further "if needed".

ABC News reported that the RBA's deputy governor, Andrew Hauser, told a Senate hearing as the data came out that inflation was broadly in line with the bank's expectations but too high. The ABS noted that automotive fuel was excluded from the trimmed mean in September and said this was a key driver of the difference between headline and trimmed mean inflation.

Why it matters for markets and crypto

Inflation data guide central bank decisions, and those decisions shape interest rates and the cost of borrowing. According to ABC News, market pricing after the release, based on Bloomberg data, put the chance of a 0.25-point rate rise at the November meeting at about 85%. That figure reflects market pricing, not an RBA statement. The data have no direct link to crypto-assets and relate to the wider economy.

What to watch next

3 November 2026: RBA policy decision. ABC News reported the board meets on Monday and announces its decision on Tuesday, along with updated forecasts.
25 November 2026: ABS release of October CPI.

Sources

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