Inflation has jumped to 3.2% in the year to September, from 2.1% in June, as waning government subsidies feed through to higher household power bills.

Any lingering chance of a rate cut next Tuesday – or this year – was squashed after the new Australian Bureau of Statistics figures also confirmed the first rise in underlying inflation in nearly three years.

The Reserve Bank’s preferred trimmed mean measure – which removes the impact of large, temporary price moves – climbed by 1% in the three months to September and far ahead of the RBA’s predicted rate of 0.6%.

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That left inflation on this trimmed mean measure at 3% in the year, against 2.7% in June. Graph showing the headline and underlying rates of inflation.

It was the first rise in underlying infla

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