Hopes of an interest rate victory on Melbourne Cup Day may be dashed with expectations that inflation will not be reined in.

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A stronger-than-expected inflation reading on Wednesday could postpone any rate relief when the central bank meets the following week.

The data will give the Reserve Bank a better sense of the pressures on Australia's economy ahead of the board's meeting in the first week of November.

Economists predict headline inflation to increase to around three per cent, up from the last quarterly reading of 2.1 per cent.

Banks are

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