Inflation hits 4.3% as Australia's cost-of-living debate heats up
Australian inflation jumped to 4.3% in September, well above the Reserve Bank's 2.5% target, sparking claims government spending is fueling the crisis.
Inflation climbed to 4.3% in the year to September, up from 4% the month before. Surging petrol and diesel prices drove much of that rise.
Even stripping out fuel costs, underlying inflation rose to 3.7%, still far above the Reserve Bank's 2.5% target. Opposition leader Angus Taylor used the figures to blame Labor's government spending for the cost-of-living squeeze.
The Reserve Bank is expected to raise interest rates again this week, adding pressure on households and businesses already struggling with higher costs. Government spending on defence, the NDIS, and health has climbed significantly.
- 4.3%
- September inflation
- 2.5%
- Reserve Bank target
- 3.7%
- Underlying inflation
Why it mattersHigher inflation means the Reserve Bank keeps raising rates, pushing up mortgages and business costs, squeezing household budgets and slowing economic growth.
AustraliaAustralian mortgage holders face another potential rate rise this week, adding to repayments already stretched by previous hikes. Renters and workers on fixed wages are hit hardest as living costs climb faster than wages.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
