Key facts
- Headline inflation rose to 4.3% in the three months through September.
- Trimmed mean CPI increased to 3.6%.
- Services inflation accelerated to 4.1%.
- Markets price in a 72% probability of an RBA rate hike.
Australia's headline inflation rate accelerated to 4.3% in the third quarter, exceeding economists' expectations and sharpening expectations of another interest rate rise next week. The Reserve Bank of Australia's preferred measure of underlying inflation, trimmed mean CPI, came in at an annual 3.6% to September. RBA officials have indicated the board may need to lift borrowing costs further to drag price growth toward its 2.5% target. The central bank's next monetary policy decision is on November 3.