# Australia's Inflation Rises to 4.3%: Learn inflation rate, driver and underlying > Australia's inflation rose to 4.3% in September, driven by housing and fuel, with the RBA's interest rate decision due on 3 November. Learn inflation and CPI vocabulary plus 10 finance words such as driver and underlying from an original short article, with audio, a plain-English summary, a dialogue and a quiz. - URL: https://ambitious-learner.com/en/resources/news-english-australia-inflation-september-2026 - Author: Ambitious Learner Editorial Team（Ambitious Learner Ambitious Learner） - Published: 2026-10-29 - Last updated: 2026-10-29 - Category: News English ## Key points in 30 seconds On 28 October 2026, the Australian Bureau of Statistics (ABS) reported that the CPI rose 4.3% in the year to September (up from 4.0% in August). Housing, up 5.2% over the year, was the biggest driver, transport came second, fuel jumped 9.4% in September alone, and underlying inflation (trimmed mean) was 3.6%. This lesson uses an original English article, audio and a plain-English summary to teach 10 finance words and phrases including inflation rate, CPI, driver, underlying and come in at, with a comparison table of inflation terms, 3 sentence patterns, a working holiday dialogue, a 6-question quiz and FAQs. - **The news in brief**: In the year to September 2026, Australia's CPI rose 4.3% (4.0% in August), with housing the biggest driver. The RBA announces its rate decision on 3 November. - **inflation**: inflation is the general rise in prices; the inflation rate is how fast prices are rising, as a percentage. - **CPI**: consumer price index, a measure of the prices households pay for everyday goods and services. - **underlying inflation meaning**: Core inflation: the price trend after removing the items whose prices move the most. - **driver meaning**: In economic news, a driver is the main cause or factor pushing a number up or down, not a person who drives. ## Are prices in Australia rising faster again? **News date: 28 October 2026 | English level: B1–B2 | Topics: economy, life in Australia** Fuel, rent, holidays: does everything in Australia feel more expensive lately? On 28 October, the Australian Bureau of Statistics (ABS) reported that Australia's consumer price index (CPI) rose 4.3% in the year to September 2026. That is higher than 4.0% in August and well above the Reserve Bank of Australia's target range of 2–3%. The English word for rising prices is **inflation**. Terms like inflation rate, CPI and underlying inflation come up all the time in economic news and in workplace conversations about costs. This lesson uses an original short English article to explain them, followed by sentence patterns, a dialogue and a quiz. If you are on a [working holiday in Australia](https://ambitious-learner.com/resources/australia-working-holiday-guide-2026) or getting ready to go, this story directly affects your rent, your fuel costs and how much you can save each week. **Timing note:** Information in this lesson is current as of 29 October 2026. The Reserve Bank of Australia (RBA) is scheduled to announce its interest rate decision on 3 November; please check the RBA's official announcement for the result. ## The Australian inflation story in 30 seconds | Question | Answer | | --- | --- | | What is the inflation rate? | The CPI rose 4.3% in the year to September 2026 (4.0% in August) | | What was the biggest driver? | Housing, up 5.2% over the year | | What was the second-biggest? | Transport (up 8.7% over the year), mainly because of fuel; fuel rose 9.4% in September alone | | What about underlying inflation? | The trimmed mean rose 3.6% over the year | | What is the RBA's target? | An inflation target range of 2–3% | | What happens next? | The RBA announces its rate decision on 3 November; ABC, citing Bloomberg, says markets put the chance of a rate rise at about 85% | Sources: [ABS media release](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026), [ABS CPI page](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release), [ABC News report, 28 October](https://www.abc.net.au/news/2026-10-28/inflation-september-cpi-ahead-of-november-interest-rate-call/107317382) and the [RBA calendar](https://www.rba.gov.au/schedules-events/calendar). Market odds are only a forecast, not an RBA decision. ## The news story in English [🔊 Listen to the news story](https://media.ambitious-learner.com/articles/news-english-australia-inflation-september-2026/audio/edaaf901-02ea-4cdc-a0e3-d520fe32e955.mp3) Try listening once with the player at the top of the page before you read anything. Listen for three key points: What was the inflation rate in September? What was the biggest driver? Why is the central bank under more pressure? Then read the full English article below, and finish with the plain-English summary in the next section. **English Level: Intermediate (B1–B2) | Topic: Economy, Australia** ### Australia's Inflation Jumps to 4.3 Per Cent Prices in Australia are rising faster again. New figures from the Australian Bureau of Statistics (ABS), released on 28 October, show that consumer prices rose 4.3 per cent in the year to September 2026. That is up from 4 per cent in August and well above the Reserve Bank of Australia's target range of 2 to 3 per cent. Housing was the biggest driver, with costs up 5.2 per cent over the year. Transport was the second-largest contributor, mainly because of fuel. Fuel prices alone jumped 9.4 per cent in the month of September as global oil prices climbed. Domestic holiday travel and accommodation also became more expensive. Underlying inflation, measured by the "trimmed mean", came in at 3.6 per cent. This measure removes the biggest price swings, so economists watch it closely to understand the long-term trend. The figures add pressure on the central bank, which will announce its next interest rate decision on 3 November. Financial markets now see a high chance of another rate rise. For households, including young people on working holiday visas, that could mean higher housing costs, pricier petrol and less money left at the end of each week. The English article above is an original learning text written from [official ABS data](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026) and [ABC News](https://www.abc.net.au/news/2026-10-28/inflation-september-cpi-ahead-of-november-interest-rate-call/107317382) reporting. It is not a word-for-word copy of any news report. ## The story in plain English Prices in Australia are going up faster. New ABS numbers show prices were 4.3% higher in September 2026 than a year before. In August the number was 4%. The central bank wants it between 2% and 3%, so 4.3% is too high. Housing pushed prices up the most: it cost 5.2% more than a year ago. Transport was next, mostly because of fuel. In September alone, fuel prices went up 9.4% because world oil prices rose. Holidays and hotels inside Australia also cost more. Experts also look at "underlying" inflation, which leaves out the prices that change the most. This number was 3.6%, and it helps them see the long-term direction of prices. The central bank will make its next interest rate decision on 3 November, and many people think it will raise rates again. For ordinary people, including young working holiday makers, this could mean higher rent, more expensive petrol and less money left each week. ## 10 useful English words for inflation and the economy Here are 10 words and phrases from the article that you can use for economic news and for planning a budget overseas. ### 1. inflation rate (n. phr.) how fast prices are rising, as a percentage Pronunciation: /ɪnˈfleɪʃn/ Inflation is the general rise in prices; the inflation rate is the percentage they rise by. **In the news:** Australia's inflation rate rose to 4.3 per cent. Prices in Australia are now rising at 4.3% a year. **Example:** The inflation rate affects how much my lunch box costs every year. As prices rise, my lunch costs more each year. ### 2. consumer price index (CPI) (n.) a measure of everyday prices It tracks changes in the prices of goods and services households usually buy (food, rent, transport), and it is the most common way to measure inflation. **In the news:** consumer prices rose 4.3 per cent Everyday prices went up by 4.3%. **Example:** The government checks the consumer price index every month. The government watches everyday prices closely. ### 3. in the year to + month (phr.) over the 12 months ending in that month **In the news:** rose 4.3 per cent in the year to September Prices were 4.3% higher in September than a year earlier. **Example:** My savings grew 10 per cent in the year to June. Over the 12 months ending in June, my savings grew by 10%. ### 4. driver (n.) main cause, key factor In economic news, a driver is not a person who drives. It is the reason a number changes. **In the news:** Housing was the biggest driver. Housing pushed prices up more than anything else. **Example:** Rent is the main driver of my monthly expenses. Most of my monthly spending goes on rent. ### 5. contributor (n.) something that helps cause a result **In the news:** Transport was the second-largest contributor. Transport added the second-largest amount to price rises. **Example:** Bubble tea is a big contributor to my weekly spending. A lot of my weekly money goes on bubble tea. ### 6. underlying (adj.) basic, real; in economic news often means "core" **In the news:** Underlying inflation came in at 3.6 per cent. Core inflation was 3.6%. **Example:** We need to find the underlying reason for the delay. We need to find the real cause of the delay. ### 7. come in at (phr. v.) (of a figure) turn out to be **In the news:** came in at 3.6 per cent The result was 3.6%. **Example:** Our sales came in at NT$2 million this quarter. Our sales for the quarter totalled NT$2 million. ### 8. target range (n. phr.) the range you aim to stay within **In the news:** the RBA's target range of 2 to 3 per cent The RBA aims to keep inflation between 2% and 3%. **Example:** My TOEIC target range is 750 to 800. I am aiming for a TOEIC score between 750 and 800. ### 9. add pressure on (phr.) make things harder for someone **In the news:** The figures add pressure on the central bank. The numbers make the central bank's job harder. **Example:** The new deadline adds pressure on our whole team. The whole team feels more stressed because of the new deadline. ### 10. pricey / pricier (adj.) (informal) expensive / more expensive petrol is the British and Australian word for fuel for cars; Americans say gas. **In the news:** pricier petrol Fuel that costs more. **Example:** Hotels in Kenting get pricier during long weekends. Kenting is a beach area in southern Taiwan; hotel prices go up on long weekends. ## What is the difference between inflation, CPI and trimmed mean? Inflation news uses a lot of terms. Here they are in one table: | English | In simple words | Explanation | | --- | --- | --- | | inflation | rising prices | A general rise in prices | | inflation rate | how fast prices rise | The percentage prices rise by, e.g. 4.3 per cent | | headline inflation | overall inflation | The CPI rise including every item | | underlying / core inflation | core inflation | Removes items with big price swings to show the long-term trend | | trimmed mean | a type of core inflation | The core inflation measure the RBA watches most closely | | deflation | falling prices | A general fall in prices | Tip: in the year to September compares prices with the same time last year (an annual rate); in the month of September is the change in September alone (a monthly rate). Do not mix them up. To see how this news could affect interest rates, read [Will Australia raise rates for a fifth time?](https://ambitious-learner.com/resources/news-english-australia-rba-rate-hike-odds-november-2026) and learn words like rate hike and cash rate. ## Grammar: 3 useful sentence patterns All three patterns come from the article, and they are very useful for reporting data and writing emails. ### Pattern 1: A is up / down from B (a change from an earlier figure) **Original:** That **is up from** 4 per cent in August. **Key point:** Subject + be + up / down + from + earlier figure is the shortest way news reports give a change in numbers. **Try it:** My score **is up from** 600 last year. My score is higher than last year's 600. ### Pattern 2: main clause + with + noun + up / down + figure (adding details) **Original:** Housing was the biggest driver, **with costs up 5.2 per cent** over the year. **Key point:** with adds detail without writing another full sentence. News writers use it a lot to keep sentences short. **Try it:** Food was our biggest expense, **with lunch costs up 15 per cent**. We spent most on food, and lunch cost 15% more. ### Pattern 3: For + group, that could mean + result **Original:** **For households**, …, **that could mean** higher housing costs… **Key point:** Use this to explain how something affects a particular group. could keeps the tone careful, which suits presentations and emails. **Try it:** **For new hires, that could mean** more training hours. New staff may need to do more training. ## Working holiday conversation: the cost of living is going up again **Scenario:** Amy is on a working holiday in Brisbane and talks with her flatmate Ben about living costs. ### English Conversation - **Amy:** Did you see the news? Australia's inflation rate is up to 4.3 per cent. - **Ben:** Yeah. No wonder everything feels so pricey lately. - **Amy:** The report says housing was the biggest driver. Our rent went up again, too. - **Ben:** And petrol is another big contributor. I spend way more on road trips now. - **Amy:** People say this will add pressure on the central bank to raise interest rates. - **Ben:** Then we'd better make a budget and stick to it. - **Amy:** Good idea. Let's check our spending every week, not just at the end of the month. ### Key phrases - **is up to 4.3 per cent** Has risen to 4.3%. - **No wonder …** That explains why something is happening. - **the biggest driver** The main cause of a change. - **another big contributor** Another important cause. - **way more** Informal for "much more". - **add pressure on someone to do something** Make someone feel they need to act. - **we'd better …** We should (it is a good idea to). - **make a budget and stick to it** Plan how much to spend, then follow the plan. To plan your living costs in Australia, see [Melbourne cost of living guide](https://ambitious-learner.com/resources/melbourne-cost-of-living) and [Australia working holiday first-week checklist](https://ambitious-learner.com/resources/australia-first-week-checklist). ## Reading and vocabulary quiz Now test how well you understood the article. Try not to look back at it. Choose your answer and press confirm to see the explanation. ## From understanding the news to speaking about it With economic news, the hardest part is often not the vocabulary but how to say the numbers and how to read news-style sentences. Ambitious Learner's [one-to-one online English lessons](https://ambitious-learner.com/programs/life-english) are planned around your level and goals. You can practise speaking about news topics, or focus on work, exams or life on a working holiday in Australia. To get ready before you go, see [How to prepare your English for a working holiday in Australia](https://ambitious-learner.com/resources/australia-working-holiday-english-guide). For questions about lessons or booking a trial class, please contact us on our [official LINE account](https://lin.ee/R3GZRrW). ## Further reading - [Will Australia raise rates for a fifth time?](https://ambitious-learner.com/resources/news-english-australia-rba-rate-hike-odds-november-2026): learn rate hike, cash rate and mortgage. - [3.6 million Australian households face food insecurity](https://ambitious-learner.com/resources/news-english-australia-foodbank-hunger-report-2026): learn food insecurity and cost of living. - [The Nobel Prize in Economics](https://ambitious-learner.com/resources/news-english-nobel-economics-2026): review finance words like inflation and interest rate. - [Melbourne cost of living guide](https://ambitious-learner.com/resources/melbourne-cost-of-living): a reference for planning your budget in Australia. ## Sources - [Australian Bureau of Statistics: CPI rose 4.3% in the year to September 2026](https://www.abs.gov.au/media-centre/media-releases/cpi-rose-43-year-september-2026) (28/10/2026) - [Australian Bureau of Statistics: Consumer Price Index, Australia](https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release) (released 28/10/2026) - [ABC News: Inflation rate rises to 4.3 per cent in September, raising rate hike expectations](https://www.abc.net.au/news/2026-10-28/inflation-september-cpi-ahead-of-november-interest-rate-call/107317382) (28/10/2026) - [Reserve Bank of Australia: Calendar](https://www.rba.gov.au/schedules-events/calendar) Facts checked on 29/10/2026. The 9.4% fuel rise is for September alone. The rise in domestic holiday travel and accommodation prices is based on ABC reporting. The chance of a rate rise (about 85%) is a market forecast reported by ABC citing Bloomberg, not an RBA decision. This lesson is not financial advice. The English article, example sentences, dialogue and quiz in this lesson are original teaching material written by Ambitious Learner, not word-for-word translations of news reports. ## FAQ ### What is inflation? How is it different from the inflation rate? Inflation is the general rise in prices. The inflation rate is the percentage prices rise by. For example: Inflation is a problem. / The inflation rate is 4.3 per cent. ### What does CPI stand for? CPI stands for consumer price index. It tracks changes in the prices of goods and services that households usually buy, and it is the most common way to measure inflation. ### What is the trimmed mean? The trimmed mean is the core inflation measure the Reserve Bank of Australia watches most closely. It removes the items with the biggest price rises and falls to show the long-term trend. In the year to September 2026 it rose 3.6%. ### When will the Reserve Bank of Australia announce its next interest rate decision? According to the RBA calendar, the next decision will be announced on 3 November 2026. Please check the RBA's official announcement for the result. ### How does inflation affect a working holiday in Australia? Rising prices usually show up in rent, fuel, eating out and travel. Before you go, it is a good idea to budget generously for living costs. Actual amounts depend on the city and your lifestyle, and this lesson is not financial advice.