Inflation hits 4.3%, RBA cash rate hike odds reach 85%
Australia's inflation jumped to 4.3% in September, well above the Reserve Bank's target, raising rate hike odds to 85%.
Australia's inflation jumped to 4.3% in the year to September, up from 4% the month before. The monthly rate surged to 0.8%, more than double August's 0.4%.
Housing led the climb, rising 5.2% annually, while fuel prices climbed 9.4%. The underlying inflation measure also tightened to 3.6%.
The Reserve Bank targets inflation between 2 and 3%, and Deputy Governor Andrew Hauser said the rate remains too high. Financial markets now see an 85% chance the RBA will lift the cash rate by 0.25% when it meets next Tuesday.
Economists say this data gives the central bank clear reason to act.
- 4.3%
- Annual inflation
- 0.8%
- Monthly inflation
- 5.2%
- Housing inflation
- 85%
- Rate hike probability
Why it mattersA rate hike would push mortgage and loan repayments higher for Australian households, affecting household budgets and business borrowing costs.
AustraliaAustralians with mortgages face the prospect of higher repayments if the RBA follows through with a rate hike next week, while savers may see improved returns.
✓ Claims checked against the source. checked 4 h ago
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