Australian inflation: Consumer Price Index jumps to 4.6% on petrol surge, rate hike odds soar

The price of petrol soared 32.8% over the month of March, lifting the cost of transportation by 9.2% in just the last 30 days. Photo / Thinkstock

Australian families are bracing for another financial blow as cost of living officially jumped in the month of March.

Official figures released by the Australian Bureau of Statistics show the pain motorists have been feeling for months, with headline inflation jumping by 1.1% in the March quarter, largely due to surging oil prices.

The Consumer Price Index (CPI) rose 4.6% in the 12 months to March 2026.

The latest number is Australia’s highest inflation since September 2023 when the nation’s economy was rebounding after Covid.

The price of petrol soared 32.8% over the month of March, lifting the cost of transportation by 9.2% in just the last 30 days.

Meanwhile, the all-important trimmed mean inflation – which the Reserve Bank uses as it strips out seasonality and volatility came in at 3.3% over the last three months or unchanged over the 12 months until March.

This is still above the central bank’s target rate of the midpoint between 2% and 3%.

Prior to the release, economists predicted the trimmed mean inflation rate would rise by 0.9% over the quarter, in line with the Reserve Bank’s forecast.

The market is putting an almost 80% chance the central bank raises the cash rate 25 basis points next week, which would be the third consecutive hike.

More to come ...

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