Australia's Inflation Accelerates to 4.3% in September, Boosting RBA Rate Hike Odds

Australia's annual headline inflation accelerated to 4.3% in September, surpassing market expectations, driven by higher fuel and domestic costs. Simultaneously, the Reserve Bank of Australia's preferred underlying measure, the quarterly trimmed mean CPI, increased 1.0% quarter-on-quarter and reached up to 3.7% year-on-year, running hotter than projected. Prior to the release, headline inflation was projected at 4.2%, with the RBA's cash rate standing at a 15-year high of 4.60%. The hotter-than-expected data reinforces hawkish policy expectations and bolsters support for the Australian dollar ahead of the RBA's November policy meeting.