Australia September inflation rises to 4.3%

Australia's annual inflation rate rose to 4.3 per cent in September, with housing and transport the largest contributors, according to figures released by the Australian Bureau of Statistics on 28 October. The increase from August's 4.0 per cent rate came as fuel prices continued to rise sharply, although their monthly increase was smaller than in August.

The September Consumer Price Index release shows prices rising 0.8 per cent over the month in original terms. After seasonal adjustment, the monthly increase was 0.6 per cent. Those figures measure the change from August to September, whereas the headline 4.3 per cent compares September with the same month a year earlier.

Housing and fuel account for much of the pressure

Housing prices were 5.2 per cent higher than a year earlier, making the group the largest contributor to annual inflation. In its accompanying announcement, the ABS linked that increase to higher costs for new dwellings and electricity. The housing group rose 0.3 per cent during September, a different measure from its annual increase.

New dwelling prices increased 4.7 per cent over the year, compared with 5.4 per cent in the year to August. The ABS said builders had passed on higher labour and materials costs. The slower annual increase therefore does not mean new dwelling prices fell: they remained above their level a year earlier, but the pace of that increase eased.

Transport prices rose 8.7 per cent over the year, making the group the second-largest contributor to annual inflation. Automotive fuel prices increased 9.4 per cent in September alone, following a 14.8 per cent rise in August. The ABS attributed the monthly fuel increase to higher world oil prices. The broader transport group increased 3.0 per cent over the month.

Recreation and culture prices rose 3.8 per cent during September and 4.5 per cent over the year. Food and non-alcoholic beverage prices were unchanged for the month in original terms, but stood 3.2 per cent above September 2025. These group results show why an unchanged monthly reading in one part of household spending can coexist with a higher overall annual inflation rate.

August's underlying inflation figure was revised

Trimmed mean annual inflation increased to 3.6 per cent in September from a revised 3.5 per cent in August. The August figure had originally been published as 3.6 per cent. The ABS said a change in seasonal factors caused the downward revision, so comparing September only with the number published last month would miss the increase shown in the updated series.

The trimmed mean monthly increase was 0.3 per cent. This measure reduces the influence of unusually large price movements when assessing underlying inflation. The ABS said automotive fuel was excluded from September's trimmed mean and was a key reason for the gap between headline and trimmed mean inflation. The two annual readings therefore describe different measures, rather than conflicting estimates of the same calculation.

The release also includes September-quarter data. The CPI increased 1.3 per cent over the quarter, while the quarterly trimmed mean, calculated on the pre-October 2025 basis, increased 1.0 per cent. These are quarterly movements. They should not be presented as September's monthly increases or confused with the 4.3 per cent annual headline rate.

City and spending patterns differ

Among the eight capital cities, annual inflation ranged from 4.0 per cent in Melbourne to 5.3 per cent in Hobart. Sydney recorded 4.3 per cent, Brisbane 4.4 per cent and Perth 4.5 per cent. The national CPI is a weighted average of the eight capitals, not a claim that every city or household experienced an identical price increase.

The split between goods and services also changed. Annual goods inflation rose to 4.6 per cent from 4.2 per cent in August, while services inflation increased to 4.1 per cent from 3.7 per cent. During September, goods prices rose 0.4 per cent and services prices rose 1.3 per cent, according to the release's analytical series.

The ABS compiles the index from a basket of goods and services purchased by Australian households, collecting prices through retailer enquiries, online collection and administrative information including supermarket scanner data. September's release provides a fresh account of those price movements; it does not announce an interest-rate decision or specify what any individual household should spend, borrow or invest.

Source: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026, and accompanying media release, 28 October 2026. Accessed 28 October 2026. Adapted under CC BY 4.0; no ABS endorsement implied.