Australia annual inflation rate rises to 4.3 percent in September

Australia's headline consumer price index inflation accelerated to 4.3 percent in the year to September, according to reports from The Guardian, Breakingthenews.net, UA.NEWS, and MarketScreener. Breakingthenews.net and MarketScreener reported that the rate increased from 4.0 percent in August. [1][3][4][5]

Underlying inflation, which strips out volatile prices, reached an annual rate of 3.6 percent to September, according to The Guardian and MarketScreener. Action Forex reported that the underlying inflation figure exceeded forecasts. The Guardian stated that the underlying figure is the preferred measure used by the Reserve Bank of Australia. [1][2][5]

Inflation measures the change in a general price index, which is typically the consumer price index. When the price level rises, each unit of currency buys fewer goods and services. Global price pressures have affected multiple economies recently. As FTMQ News reported earlier, annual inflation in the United Kingdom reached 3.5 percent in September, while Eurozone inflation averaged 3.8 percent in the same month. [6][8][9]

The latest inflation figures sharpen expectations of another interest rate rise by the Reserve Bank of Australia, according to The Guardian. RBA officials have indicated that the board may need to lift borrowing costs further to bring inflation back toward its target. The central bank decision is scheduled for next week. [1]