Australia’s annual inflation sinks to 2.8%, the lowest rate in more than three years, increasing chance of rate relief

Inflation data released in Australia has increased the chance of interest rates being lowered sooner rather than later. Photograph: Sam Mooy/AAP

Australia’s headline inflation sank to its lowest level in more than three years in the September quarter, as lower energy prices and elevated interest rates eased price pressures in the economy.

The annual consumer price index for the July-September period was 2.8%, or the lowest since the March quarter of 2021, the Australian Bureau of Statistics reported on Wednesday.