Chances of an interest rate cut by Christmas have all but disappeared after inflation jumped to its highest level in more than a year with signs that price pressures are broadening across the entire economy.

In a blow to the Albanese government’s claims to have inflation under control, the Australian Bureau of Statistics revealed on Wednesday that inflation jumped by 1.3 per cent in the September quarter, taking the annual rate to 3.2 per cent.

More troubling for the Reserve Bank, the closely watched measure of underlying inflation – which excludes unusually large movements in prices – lifted by a higher-than-expected full percentage point, taking the annual rate to 3 per cent.

Financial markets, which just a week ago put the chance of a rate cut at the RBA’s meeting next week at more t

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