Australia’s headline consumer price index rose to 4.3% in the latest release, marking a sharp acceleration in inflation. The figure, which includes all items, was published ahead of the Reserve Bank of Australia’s (RBA) policy meeting next week.
Alongside the headline rate, the RBA’s preferred gauge of underlying inflation – which strips out volatile food and energy prices – climbed to an annualised 3.6% for September. The rise in both measures has sharpened market expectations that the central bank will raise its key interest rate for a fifth time this year.
Analysts note that the uptick comes as the Middle East conflict continues to push up global commodity prices, adding pressure to Australia’s cost of living. The higher inflation readings suggest that the RBA may need to tighten policy further to keep inflation near its 2‑4% target band.
With the RBA’s decision set for next week, market participants are watching the data closely for clues about the bank’s stance on monetary policy. The latest figures add to a series of recent releases that have shown inflationary pressures persisting across the economy.
<small>Source: The Guardian — read the original story there.</small>
