Australian inflation rises, putting RBA rate decision in focus

Australia’s consumer prices rose sharply in the September quarter and annual inflation accelerated to 4.3% in September, adding pressure on the Reserve Bank of Australia as it considers whether to raise interest rates again at its November meeting. The Consumer Price Index increased 1.3% in the September quarter, compared with 0.6% in the June quarter, according to Australian Bureau of Statistics data. The annual rate for the quarter was 3.9%. Separately, September’s monthly CPI rose 0.8%, taking annual headline inflation to 4.3% from 4.0% in August. Underlying price growth also remained above the RBA’s 2% to 3% target. The quarterly trimmed mean, the central bank’s preferred measure of underlying inflation, rose 1.0%, bringing its annual rate to 3.7%. The annual trimmed-mean figure for September was 3.6%, according to the monthly data. The figures came ahead of the RBA Board’s November 3 cash-rate decision. The bank has raised its cash rate four times in 2026, including a 25-basis-point increase in September that took the rate to 4.60%. The November decision had not yet been made. Market expectations of another increase strengthened after the release. One market estimate put...