The Australian Bureau of Statistics has revealed that while the Consumer Price Index (CPI) remained unchanged in October on a monthly basis, the annual rate increased to 3.8%, climbing from 3.6% in September.

This figure surpasses economists’ expectations, who had predicted a 3.6% rise, and it now significantly exceeds the Reserve Bank of Australia’s (RBA) target range of 2-3%.

Charles Croucher, political editor at 9News, commented, “Any hope for an interest rate cut has vanished. This figure is worse than anticipated and likely more severe than even the most pessimistic forecasts predicted.”

Historically, monthly inflation data has been less reliable due to its status as merely a CPI indicator rather than a full index. However, today marks the first instance of the ABS releasing a comprehensive monthly CPI, lending these figures greater significance as the RBA prepares for its final cash rate meeting of the year on December 9.

While monthly inflation data was previously less reliable, as it was only a CPI indicator rather than the full index, today marked the first time the ABS released a full monthly CPI, giving the figures more weight ahead of the RBA’s final cash rate meeting of the year on December 9.

In what will come as little surprise to most Australians, housing costs were the main driver of price rises over the past year, with electricity and rental costs the main culprits.