Australian inflation reaches 4.3% ahead of RBA rate decision
Underlying inflation also increased in September, with the annual trimmed mean reaching 3.6% before the Reserve Bank's November meeting.
Australia's annual inflation accelerated to 4.3 per cent in September from 4 per cent in August, the Australian Bureau of Statistics said, as a larger-than-expected price rise heightened expectations of a November interest rate increase.
The monthly consumer price index increased by 0.8 per cent, compared with 0.4 per cent in August. Rachael McCririck, the ABS head of price statistics, said housing contributed most to annual inflation, with prices rising 5.2 per cent.
The annual trimmed mean measure of underlying inflation rose to 3.6 per cent. Its August reading was revised down to 3.5 per cent.
Before the September figures were published, market pricing indicated a probability above 60 per cent for a November rate rise. Reserve Bank deputy governor Andrew Hauser had warned that the inflation outlook was worse than the bank had forecast.
The Reserve Bank's rate-setting board will announce its decision on Tuesday afternoon. Updated economic forecasts will accompany the decision, including projections for inflation.
