Australia’s inflation rate rises to 4.3%, fuelling fears of fifth interest rate hike this year
News Source
•Wed, 28 Oct 2026 02:17:32 GMT
📰 What Happened
Australia's inflation rate climbed to 4.3% in the year to September, up from 4.0%. The Bureau of Statistics released the figures on Wednesday. The Reserve Bank's preferred measure, which leaves out wild price swings, sat at 3.6%. That is still well above the bank's 2.5% target. Fuel was the biggest cause. Petrol rose 9.4% in just one month, and transport costs are up 8.7% over the year. Food rose 3.2% and housing 5.2%. RBA deputy governor Andrew Hauser called the numbers "too high". The bank meets on 3 November, and most economists expect a rate rise.
🔍 The Backstory
Australia's cash rate already sits at 4.6%, the highest in 15 years, after four rises in 2026. The bank has been fighting inflation for years without getting it back to target. Now a war in the Middle East has pushed oil prices up and made the job harder. Treasurer Jim Chalmers says the war is the main cause and points to a weak private sector. Critics say government spending and weak productivity also play a part. Jobs data shows the economy slowing at the same time prices rise, a painful mix for households.
🎯 Why It Matters
A rate rise means higher repayments for anyone with a mortgage. It also lifts costs for credit cards and business loans, just before Christmas.
Australia's inflation rate climbed to 4.3% in the year to September, up from 4.0%. The Bureau of Statistics released the figures on Wednesday. The Reserve Bank's preferred measure, which leaves out wild price swings, sat at 3.6%. That is still well above the bank's 2.5% target. Fuel was the biggest cause. Petrol rose 9.4% in just one month, and transport costs are up 8.7% over the year. Food rose 3.2% and housing 5.2%. RBA deputy governor Andrew Hauser called the numbers "too high". The bank meets on 3 November, and most economists expect a rate rise.
Australia's cash rate already sits at 4.6%, the highest in 15 years, after four rises in 2026. The bank has been fighting inflation for years without getting it back to target. Now a war in the Middle East has pushed oil prices up and made the job harder. Treasurer Jim Chalmers says the war is the main cause and points to a weak private sector. Critics say government spending and weak productivity also play a part. Jobs data shows the economy slowing at the same time prices rise, a painful mix for households.
A rate rise means higher repayments for anyone with a mortgage. It also lifts costs for credit cards and business loans, just before Christmas.