In brief
Australia’s annual inflation rate climbed to 4.3 % in September, the highest in six months, according to the Australian Bureau of Statistics. The increase was led by sharp rises in housing and transport costs, while the Reserve Bank of Australia sees the uptick as a sign that more interest‑rate hikes may be necessary. The Australian Broadcasting Corporation noted the probability of a November rate increase jump to 79 % after the data release.
Australia’s consumer price index rose to a six‑month high of 4.3 % in September, official data from the Australian Bureau of Statistics released on Wednesday showed. The uptick took the year‑on‑year rate from 4.0 % in August to the highest figure since March.
Raynold McCririck, head of prices statistics at the ABS, said a 5.2 % rise in housing prices and an 8.7 % jump in transport prices were the main drivers, the latter linked to higher fuel costs. Automotive fuel prices rose 9.4 % in September, down from a 14.8 % increase in August, a rise he attributed to higher world oil prices.
"On a monthly basis, automotive fuel prices rose 9.4 percent in September, compared to a rise of 14.8 percent in August. This was driven by higher world oil prices," said McCririck.
The Reserve Bank of Australia’s trimmed mean underlying inflation climbed from 3.5 % in August to 3.6 % in September, reinforcing officials’ view that the recent uptick may justify further monetary tightening.
Chances of another rate hike at the RBA Monetary Policy Board’s November meeting reportedly rose from 60 % to 79 % after the inflation data, Australian Broadcasting Corporation news cited. The board had already increased the cash rate target by 0.25 percentage points in late September, bringing it to a 15‑year high of 4.6 % amid ongoing inflationary pressures from Middle East conflicts.
