Australian inflation rises to 4.3 per cent
The new figures increase pressure on the Reserve Bank of Australia to raise interest rates again.
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Inflation in Australia rose to 4.3 per cent year on year in September, up from 4.0 per cent in August. Higher fuel prices were the main contributor to the increase, which could also affect interest rates and the global energy market.
The Australian Bureau of Statistics published the September inflation figures on Wednesday. Consumer prices were 4.3 per cent higher than a year earlier. Annual inflation stood at 4.0 per cent in August. The so-called trimmed mean, a core measure monitored by the central bank, came in at 3.6 per cent year on year.
The Australian government said the new figures confirmed that inflation remained too high. According to the Treasury, higher oil prices were a major cause of the increase. Quarterly inflation remained at 3.9 per cent, the same statement said, while the trimmed mean rose to 3.7 per cent on a quarterly basis.
The figures are important for the Reserve Bank of Australia. The central bank is trying to bring inflation back to its target range of 2 to 3 per cent. If price rises remain persistent, the bank may raise interest rates or keep them high for longer. That makes borrowing more expensive for households and businesses and could slow the growth of the Australian economy.
Fuel is an important part of the latest increase. According to the available analyses, transport prices rose sharply in September. It has not yet been established whether more expensive fuel will later lead to higher prices for other goods as well.
For the Netherlands, the Australian figure is not a direct predictor of Dutch inflation. The economies differ and their price structures are not the same. However, the figure shows how sensitive advanced economies remain to energy prices. European central banks are also watching whether higher fuel costs remain temporary or spread to wages and services.
The Australian government meanwhile faces a political dilemma. Measures that provide financial support for fuel or households can protect purchasing power, but cost money and can keep demand in the economy high. Less support may help curb inflation, but increases pressure on households already facing higher energy and housing costs.
Expectations of an interest-rate rise are not yet a rate decision by the Reserve Bank. The government identifies higher oil prices as a major cause of the increase in inflation.
The figures primarily provide a new picture of price pressures in September. They do not yet say how long the higher inflation will last. One open question is how fuel prices will develop in the coming months.
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One story, several perspectives
What is established
- Australian inflation rose to 4.3 per cent in September.
- Core inflation remained above the central bank's target range.
- Fuel prices contributed to the increase in prices.
Left
Arguments The government should protect households from energy and fuel shocks, for example through targeted support and investment in public transport and renewable energy. Higher interest rates often hit renters, first-time buyers and people on low incomes harder than wealthier households.
Values Purchasing power, social protection, affordability and a rapid energy transition.
Consequences More support may slow the fall in inflation in the short term, but prevents the heaviest burdens from falling on vulnerable households.
Centre
Arguments The central bank should respond to the figures independently, while the government keeps support as targeted as possible. Temporary compensation may be defensible, but structural spending must remain within a credible budgetary framework.
Values Price stability, institutional independence, efficiency and fiscal discipline.
Consequences A combination of limited support and waiting for new figures could stabilise the economy, but would not immediately resolve dependence on energy.
Right
Arguments The inflation figures show that government spending and broad subsidies should be used sparingly. The central bank should raise interest rates if necessary, and the government should create room for energy production, competition and lower taxes.
Values Monetary discipline, personal responsibility, market forces and economic growth.
Consequences A stricter policy could temper inflation expectations more quickly, but would increase financing costs and could weigh on growth and employment.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The main inflation figures and the development of core inflation have been confirmed by the Australian Bureau of Statistics and the government. The text presents the effects on interest rates as possible policy responses, not as a settled decision.
- confirmed Australian inflation rose to 4.3 per cent year on year in September. — Mentioned by the Australian Treasury on the basis of ABS figures. source
- confirmed Inflation stood at 4.0 per cent in August. — The comparison appears in the Treasury statement and the ABS series. source
- confirmed The trimmed mean came in at 3.6 per cent year on year. — Mentioned in the Treasury statement and in the economic analysis. source
- confirmed Higher oil and fuel prices contributed to the rise in inflation. — Mentioned by the Treasury and elaborated on in the ABS-related analysis. source
Editor's note
The inflation figures come from the Australian Bureau of Statistics and were confirmed by the Australian government. A future interest-rate rise is not certain and is therefore described as a possible consequence.Sources
- New Inflation Figures 28 October — Australian Treasury
- Consumer Price Index, Australia, September 2026 — Australian Bureau of Statistics
- Strong inflation sets course for RBA to hike next week — MacroBusiness
More on this in Dutch media
- NRC — „australië inflatie”
- NOS — „australië inflatie”
- Het Parool — „australië inflatie”