Australia's inflation tops forecasts at 3.2%, highest in over a year

Core Insights - Australia's inflation accelerated in Q3, with consumer prices rising 3.2% year-over-year, the fastest pace in over a year, surpassing the 2.1% increase in Q2 and the 3% forecast by economists [1][2] Inflation Trends - The inflation rate has exceeded the Reserve Bank of Australia's (RBA) target band of 2%-3% for the first time since Q2 2024, highlighting the challenges faced by policymakers in managing persistent price pressures [2] - RBA Governor Michelle Bullock noted that inflation in housing and market services was higher than expected, although it does not indicate runaway inflation [3] Economic Performance - Australia's economy grew by 1.8% year-over-year in Q2, marking the fastest growth since September 2023, outperforming the 1.6% expected by economists and the 1.3% seen in the previous quarter [4]