Australia's consumer price index rose 4.3% in the 12 months to September 2026, according to the Australian Bureau of Statistics release of 28 October. That is up from 4.0% in the year to August. On a quarterly basis the CPI rose 1.3% in the September quarter, and the monthly print for September alone was 0.8%.

Housing was the largest contributor to the annual rise. The housing group was up 5.2% over the year. New dwelling prices rose 4.7%, which the ABS attributes to builders passing on higher materials and labour costs, down from a 5.4% annual rise in the year to August. Electricity rose 12.8%, largely because Commonwealth electricity rebates ended over the year. Rents rose 3.6%, unchanged as an annual rate since May. Property rates and charges rose 5.6%.

Transport was the second-largest contributor, up 8.7% over the year, driven by higher automotive fuel prices. Fuel rose 9.4% in the month of September alone. When large one-off moves are stripped out, the ABS trimmed mean rose 1.0% in the September quarter and 3.6% over the year, up from a revised 3.5% in the year to August.

The Reserve Bank of Australia's cash rate target stands at 4.60% after the Monetary Policy Board raised it by 25 basis points on 29 September, the fourth increase this year. The Board's published schedule has its next meeting on 2 and 3 November. The September statement said housing prices had fallen in most capital cities and that new housing loans had declined noticeably, and it left open the possibility of further increases if needed.

For a buyer financing Australian property with a variable-rate Australian loan, the cash rate is the benchmark behind the repayment on the same principal. A buyer paying cash from savings held in another currency is not directly tied to the cash rate, although the purchase price still has to be converted into Australian dollars on the day of settlement. Median capital-city house prices in the September quarter are covered separately in House prices fall in all eight Australian capitals for the first time in 15 years.

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Sources

Sources read 29 October 2026.