Live Updates > Live Update Details
2025-10-29 08:51:34
[Likelihood of a Short-Term Interest Rate Cut in Australia Almost Ruled Out] Data shows that driven by rising housing and travel costs, Australia's consumer prices in the September quarter saw their biggest increase in over two years. This unexpected surge in core inflation has virtually ruled out the possibility of a near-term interest rate cut. The Australian Bureau of Statistics reported that the CPI rose 1.3% quarter-on-quarter in the third quarter, higher than the market expectation of 1.1%; year-on-year, it jumped from 2.1% to 3.2%, partly due to base effects and energy subsidies. The revised average core inflation for the quarter was 1.0%, higher than the expected 0.8%, an unwelcome signal for the Reserve Bank of Australia, which had hoped for a figure closer to 0.6%. On an annual basis, core inflation rose from 2.7% to 3.0%, marking the first acceleration since the high of 6.8% at the end of 2022.
