Australia Q3 inflation figures came in above expectations, supporting RBA’s hawkish stance


For September alone, the CPI rose 5.6% year-on-year, up from 5.2% in August and exceeding forecasts for a 5.4% increase.

The RBA’s Trimmed Mean CPI rose 1.2% in the third quarter, to top forecasts of 1.1%. The annual pace slowed to 5.2%, from 5.9%.

The topside surprise on the headline and core measures of inflation will put pressure on the Reserve Bank of Australia to hike in November.

Gareth Aird, head of Australian Economics at CBA, expects a rate hike in November would enable the RBA to retain its central case for inflation to return to the target band by late 2025.

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