Inflation jumps to 3.2%, dashing hopes of a Melbourne Cup day rate cut for homeowners

<p>The RBA has long anticipated a rebound in the headline inflation rate, driven by the rolling expiry of generous household power bill subsidies</p><ul><li><p><a href="https://www.theguardian.com/australia-news/live/2025/oct/29/federal-politics-parliament-victoria-queensland-bom-labor-coalition-anthony-albanese-sussan-ley-abs-inflation-apec-summit-afp-press-club-ntwnfb">Follow our Australia news live blog for latest updates</a></p></li><li><p>Get our <a href="https://www.theguardian.com/email-newsletters?CMP=cvau_sfl">breaking news email</a>, <a href="https://app.adjust.com/w4u7jx3">free app</a> or <a href="https://www.theguardian.com/australia-news/series/full-story?CMP=cvau_sfl">daily news podcast</a></p></li></ul><p>Inflation has jumped to 3.2% in the year to September, from 2.1% in June, as waning government subsidies feed through to higher household power bills.</p><p>Any lingering chance of a rate cut next Tuesday – or this year – was squashed after the new Australian Bureau of Statistics figures also confirmed the first rise in underlying inflation in nearly three years.</p> <a href="https://www.theguardian.com/business/2025/oct/29/australia-inflation-rate-cpi-consumer-price-index-figure-rba-reserve-bank">Continue reading...</a>