The short answer
Prices in Australia rose 4.3% in the 12 months to September 2026, the Australian Bureau of Statistics reported on 28 October. That's up from 4.0% in August, and the highest since March, when it reached 4.6%.
Prices rose 0.8% in September alone (0.6% seasonally adjusted) and 1.3% over the September quarter.
The trimmed mean, the underlying measure the RBA watches, rose to 3.6% from 3.5%. It leaves out the items whose prices moved most in either direction each month, so a jump in fuel or a rebate ending moves it less. At 3.6%, it is above the Reserve Bank's 2–3% target band, as it has been all year.
Inflation over the past year
Inflation fell to 3.5% in July, then rose two months running. The trimmed mean has moved less: from 3.3% a year ago to 3.6% now.
What drove it
Housing and transport added more than half of the 4.3%:
| Group | Over the year | In September |
|---|---|---|
| Transport | 8.7% | 3.0% |
| Housing | 5.2% | 0.3% |
| Education | 4.7% | 0.0% |
| Recreation and culture | 4.5% | 3.8% |
| Alcohol and tobacco | 4.3% | 0.7% |
| Insurance and financial services | 3.9% | 0.6% |
| Health | 3.7% | −0.3% |
| Food and non-alcoholic drinks | 3.2% | 0.0% |
| Communication | 2.3% | 0.5% |
| Furnishings and household services | 0.8% | −0.6% |
| Clothing and footwear | 0.4% | −2.7% |
The items behind the groups
- Fuel. Automotive fuel rose 9.4% in September after 14.8% in August, on higher world oil prices.
- Electricity. The 12.8% rise is largely the Commonwealth's electricity bill rebates ending over the year, not retailers' prices alone. What a plan costs depends on your postcode and how you use power: see electricity prices per kWh by state, or compare electricity plans on your own bill.
- New homes. New dwelling prices rose 4.7%, down from 5.4% in August. Builders raised base prices for labour and materials, and offered bigger discounts.
- Rents. Rents rose 3.6%, the same annual rate since May. The Rent Assistance increase on 20 September held September's rise to 0.2%.
- Holidays. Domestic travel and accommodation rose 8.0% in September alone, with school holidays and major sporting events.
What 4.3% means for savings
A dollar earning less than 4.3% a year buys less at the end of the year than it did at the start. Of the 101 savings accounts any adult can open that BankMate tracks, on 28 October 2026:
The middle account pays 5.00% in a month its conditions are met and 0.10% in a month they're missed. These figures leave out Revolut, whose rate depends on a paid plan.
AMP Bank GO Save pays 5.50% to $50,000 and needs a GO Everyday account. Every one of the 71 banks whose term deposits BankMate tracks pays more than 4.3% on at least one 12-month deposit; the middle bank's highest is 5.30%.
The big four banks
All four pay more than 4.3% on a bonus account in a month its conditions are met: ANZ through ANZ Plus, since its Progress Saver pays 4.00%. Their online savers, which ask nothing each month, all pay less than half of 4.3%.
- Bonus account, conditions met
- GoalSaver: 5.25%
- Online saver, no conditions
- NetBank Saver: 2.30%
- Bonus account, conditions met
- Reward Saver: 5.25%
- Online saver, no conditions
- iSaver: 1.85%
- Bonus account, conditions met
- Westpac Life: 5.25%
- Online saver, no conditions
- eSaver: 1.25%
- Bonus account, conditions met
- Progress Saver: 4.00% · ANZ Plus Growth Saver: 5.35%
- Online saver, no conditions
- Online Saver: 1.60%
After tax
Interest is taxed as income. On 2026–27 tax rates with the 2% Medicare levy, here's what the highest savings rate, 5.80%, keeps after tax:
For someone on the 30% rate, a savings rate would need to be about 6.32% before tax to keep pace with 4.3% inflation after it. No savings account BankMate tracks pays that today. Some people on low incomes pay less than the full Medicare levy, so they keep a little more.
What comes next
The Reserve Bank raised the cash rate to 4.60% on 29 September 2026. Its Board next meets on 2 and 3 November and announces its decision at 2:30pm on 3 November. The ABS releases October's CPI on 25 November 2026.
BankMate tracks every savings and term deposit rate change after each decision: see who passed on the September rise, compare savings accounts on your own balance, or compare term deposits.
Sources
Inflation figures: the Australian Bureau of Statistics, Consumer Price Index, Australia, September 2026, released 28 October 2026, and its media release. Contributions to the annual rise are the ABS's own, rounded. Savings and term deposit rates: each bank's Open Banking (CDR) feed as BankMate read it on 28 October 2026, accounts any adult can open. Tax rates: the ATO's resident rates for 2026–27.
Factual comparison, not financial advice. BankMate doesn’t consider your objectives, financial situation or needs, and isn’t licensed to give advice. Read the provider’s PDS, target market determination or key facts sheet before deciding.