Core inflation surges 1% as RBA flags persistent price pressure
Core inflation rose 1% in September, exceeding the RBA's forecast and signalling the rate fight is far from over.
Australia's underlying inflation jumped 1 per cent over three months, beating the Reserve Bank's own prediction of 0.8 per cent. On an annual basis, core inflation now sits at 3.6 per cent.
Headline inflation was hotter still, rising 1.3 per cent quarterly and 4.3 per cent yearly. The numbers suggest price pressures are proving harder to shake than many hoped.
RBA governor Michele Bullock warned the labour market remains tight and inflation too high. Treasurer Jim Chalmers acknowledged the problem: inflation is persisting "longer than anyone would like".
Housing led the price surge, rising 5.2 per cent annually, with transport costs climbing 8.7 per cent due to higher fuel driven by Middle East conflict.
- 1 per cent
- Core inflation quarterly
- 3.6 per cent
- Core inflation annually
- 5.2 per cent
- Housing price rise annually
- 8.7 per cent
- Transport price rise annually
Why it mattersSticky inflation means the RBA may keep interest rates higher for longer, affecting mortgage holders and borrowers. It also pressures household budgets on everyday essentials.
AustraliaAustralian households already stretched on mortgages and groceries face continued pressure. The RBA board meets next week to decide whether rate hikes so far are enough to bring inflation back to its 2-3 per cent target.
✓ Claims checked against the source. checked 2 h ago
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