Australia CPI Runs Hot: Inflation Hits 4.3% in the Year to September 2026
Australia's cost of living pressure picked up again in September 2026. The monthly Consumer Price Index (CPI) rose 4.3% in the 12 months to September 2026, up from 4.0% in the 12 months to August 2026.
This article uses the monthly CPI series only. Every annual figure below covers the 12 months to September 2026, so nothing here should be confused with a different reporting basis.
What the September print says
The headline result is straightforward: prices rose faster over the year to September than they did over the year to August.
In the month of September 2026 itself, the CPI rose 0.8% in original terms and 0.6% in seasonally adjusted terms. On a seasonally adjusted basis, headline CPI rose 4.4% in the 12 months to September 2026.
The underlying measures tell a similar story. The annual trimmed mean (monthly series) was 3.6% in the 12 months to September 2026, up from a revised 3.5% in the 12 months to August 2026. The monthly trimmed mean (monthly series) rose 0.3% in September 2026 on a seasonally adjusted basis.
A separate series, CPI excluding volatile items, rose 3.7% in the 12 months to September 2026 and 0.5% in the month. That 3.7% belongs to CPI excluding volatile items only. It is not the trimmed mean, and the two series should not be swapped.
For context, the All groups CPI index for the weighted average of eight capital cities was 104.34 in September 2026, with September 2025 as the index reference period (100.0). The CPI is a general measure of price change for goods and services purchased by Australian households, and monthly data is published nationally as a weighted average of the eight capital cities.
Where prices rose most
Two groups stand out in the year to September 2026.
Housing rose 5.2% in the 12 months to September 2026, and 0.3% in the month. Transport rose 8.7% in the 12 months to September 2026, and 3.0% in the month in original terms (3.1% seasonally adjusted).
Other group movements for the 12 months to September 2026, in original terms, included: Food and non-alcoholic beverages 3.2%, Alcohol and tobacco 4.3%, Clothing and footwear 0.4%, Furnishings, household equipment and services 0.8%, Communication 2.3%, Recreation and culture 4.5%, and Education 4.7%. These are original-terms annual movements, not seasonally adjusted figures. (Health and Insurance and financial services are not in this partial list.)
Housing and transport matter for household budgets because they cover the roof over your head and the cost of getting around. When both rise strongly in the same year, the squeeze shows up in everyday spending, not just in one bill.
What happens next: the RBA decision on 3 November
The Reserve Bank of Australia (RBA) Monetary Policy Board last moved on Tuesday 29 September 2026, when it increased the cash rate target by 25 basis points to 4.60%.
The Board meets next on 2 to 3 November 2026, and the outcome will be announced at 2.30 pm on Tuesday 3 November 2026. A Statement on Monetary Policy will be released at the same time as the November decision.
This article does not predict what the Board will decide. The decision has not been announced, and only its date and timing are confirmed.
For background on the November meeting, see RBA November 3 Rate Watch October 2026. For what a weaker mortgage market looked like in the lead-up, see Australia Mortgage Demand Collapse September 2026.
What a mortgage holder should watch
If you hold a mortgage, the 3 November announcement is the date to watch, along with the Statement on Monetary Policy released at the same time.
Three things are worth watching once the announcement is made. First, what the Board actually decided, in its own words. Second, what the Statement on Monetary Policy says about the outlook, since it is the Board's fuller account of its thinking. Third, any notice from your own lender about whether your interest rate changes and, if so, from what date.
Those three points are simply what to look for. They are not a prediction about the decision, and this article does not offer financial advice or suggest any action on your loan.
Frequently asked questions
What was Australia's CPI in September 2026?
Headline CPI rose 4.3% in the 12 months to September 2026, up from 4.0% in the 12 months to August 2026. In the month of September 2026, the CPI rose 0.8% in original terms and 0.6% in seasonally adjusted terms.
What is the annual trimmed mean (monthly series)?
The annual trimmed mean (monthly series) was 3.6% in the 12 months to September 2026, up from a revised 3.5% in the 12 months to August 2026. The August figure was revised down from 3.6% to 3.5% because of a change in seasonal factors.
Is the trimmed mean 3.7%?
No. The annual trimmed mean (monthly series) is 3.6%. The 3.7% figure belongs to a separate series, CPI excluding volatile items, which rose 3.7% in the 12 months to September 2026.
How much did housing and transport rise?
Housing rose 5.2% and transport rose 8.7% in the 12 months to September 2026.
What is the current cash rate?
The cash rate target is 4.60%, set by the RBA Monetary Policy Board decision of Tuesday 29 September 2026.
When is the next RBA decision?
The next RBA Monetary Policy Board meeting is 2 to 3 November 2026, with the outcome announced at 2.30 pm on Tuesday 3 November 2026. A Statement on Monetary Policy will be released at the same time.
Sources
Sources: Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026 release; Reserve Bank of Australia, Monetary Policy Decision of 29 September 2026 and 2026 Monetary Policy Board Meeting Dates. Checked 28 October 2026.
