The nation’s inflation rate has turned upward for the first time in nearly two years, prompting the Reserve Bank of Australia (RBA) to maintain its cautious stance on monetary policy. When the RBA met on November 4, it held the official cash rate steady at 3.6%, citing signs that while inflation had eased from its 2022 peak, underlying pressures were building again.

Trimmed mean annual inflation — the RBA’s preferred measure of core inflation — rose to 3% in the September quarter, up from 2.7% in June. The RBA targets inflation between 2% and 3%, meaning the latest data places it right at the upper end of the range.

According to data from the Bureau of Statistics, electricity prices were among the largest contributors to the increase, rising 9% as government electricity rebates began to phase out. Housing costs also climbed 2.5% during the quarter, reflecting higher rents and construction costs.

Despite these pressures, the RBA opted for stability, noting that monetary policy tightening over the past two years continues to filter through the economy. It remains focused on achieving a “soft landing” — cooling inflation without severely restricting growth. Analysts suggest that the RBA’s decision to hold rates steady reflects confidence that inflation will ease again into 2026, though persistent cost-of-living pressures remain a concern for households.