Consumer prices rose 1.2 per cent over the three months to September, making a 5.4 per cent increase over the past 12 months.

The latest consumer price index from the Australian Bureau of Statistics came in a little above expectations and could complicate matters for the Reserve Bank as it tries bring down inflation.

Headline inflation was down from six per cent annual growth in the June quarter, and well below the peak of 7.8 per cent through to the December quarter.

The trimmed mean, a measure of inflation that removes erratic price movements both up and down, increased by 1.2 per cent over the quarter and was down 5.2 per cent over the year.

This was down from 5.9 per cent annual growth in the June quarter.

ABS head of prices statistics Michelle Marquardt said the quarterly increase was higher than in the June quarter but lower than some of the increases seen throughout 2022.

“While prices continued to rise for most goods and services, there were some offsetting falls this quarter including for child care, vegetables, and domestic holiday travel and accommodation,” she said.

Consensus forecasts had September quarter inflation lifting 1.1 per cent over the three months and annual inflation softening to 5.3 per cent.

While inflation is sinking convincingly from its peak, it remains well above the central bank’s target of two-three per cent.

The RBA has been lifting interest rates to wrestle inflation back under control although it’s either at or close to the end of its tightening cycle, having kept interest rates on hold for four months in a row.

The fresh inflation numbers will be a key consideration for board members at the Reserve Bank’s November cash rate meeting.

– AAP